People are having children later and later in life. Janet Jackson gave birth to a son at 50, while Steve Martin discovered the joys of parenthood at 67 (decades after starring in the movie Parenthood).
But becoming a parent later-in-life has its challenges, including certain estate planning and retirement considerations.
Older parents will first want to make sure their estate planning is up-to-date. This includes designating a guardian for your children. If you do not name a guardian, the court will have to make that decision for you.
You may also want to establish a trust for your children, setting aside your assets for them when they are older.
This is particularly important if your child is the product of a second marriage. A trust can give rights to your spouse but give the trustee the power to manage your property and protect it for the next generation.
The next thing to consider is retirement savings. Financial advisors typically suggest prioritizing putting away money for retirement over putting away money for college, as it’s easy for students to borrow for schooling than for you to borrow for retirement.
As an older parent, you might be more financially stable than you would have been in your 20s or 30s, making it easier to set aside money for both college and retirement. And if you have retired by the time your kids head to college, they might be able to qualify for additional financial aid.
Lastly, older parents should make sure they have a high level of life insurance, with term policies that extend through their children’s college careers.
If you’re an older parent who has questions about retirement and estate planning, Gummer Elder Law can help. Contact us today to learn how we can assist you and your loved ones.