Fathers who live in the Dallas area often worry about what will happen to their children in the future, when their parents are no longer around to support them. Whether a father is married, divorced or single, any Texas father can still provide for his children after he passes away by passing on their assets. There are a number of ways fathers can accomplish this.
When it comes to Texas law, fathers have great latitude to leave their children an inheritance. Smart Asset explains that unmarried parents who do not have wills shall have their property passed on to their children. Even children that are born out of wedlock are granted full inheritance rights by state law. They are not only permitted to inherit from parents, but also from the ancestors or other descendants of their parents.
Still, even with the inheritance rights given to Texas children, single fathers can still take proactive steps to make sure their children receive an inheritance. As the American Bar Association points out, single parents can set up their children as beneficiaries on their accounts, insurance policies, or other assets that pay out upon the death of the asset holder.
Examples of such assets include any of the following:
- retirement accounts
- payable on death accounts
- a 401(k)
- life insurance policies
Even if a father is divorced, he does not need the approval of the ex-spouse to set up these beneficiary arrangements. Any Texas father can create his own account or insurance policy and name a child as the heir to those assets.
Additionally, fathers can create financial trusts for their children. With a trust, a father can set guidelines for dispensing the money to the child, such as leaving amounts of money when the child reaches a certain age, or earmarking money for specific purposes, such as college funding. Trusts can also protect the money from being taken if the beneficiary is sued and receives a judgment.