Whenever people talk about an estate plan, they picture their house, possessions, money, wills and even trusts. However, people with children under the age of 18 need to make sure that they consider who will be responsible for the daily care and welfare of those children.
Until a child is eighteen years old, they can't inherit property in their own name. Instead, an adult needs to manage that property until the child can manage it for themselves. According to some articles I’ve seen, up to 57 percent of Americans do not have a will and approximately 69 percent of parents have not named legal guardians for their children. So what is a guardian?
The guardian of your children is the person responsible for taking care of your children’s physical, emotional, and spiritual needs if you are unable to care for them. You want to make sure that, however you structure your estate plan, you name guardians for your minor children. And when you do, make sure to avoid the following mistakes.
Don’t name a married couple to act as guardians and fail to provide instructions in case the named couple divorces or suffers the death of one spouse. Make sure to name sufficient alternate guardians to serve if your first choice is unavailable.
Consider financial resources when deciding who should raise your children. Your guardian does not have to also be the financial decision maker for your kids. They should be the person who will make the best health care, education, housing, discipline, and care decisions for your kids. It is your responsibility to leave enough money behind to take care of your kids either through savings or life insurance; you can and should name someone other than the guardians of your children as guardians of the estate. Lastly, don’t forget to make short-term arrangements for the care of your minor children following your incapacity or death.
This is by no means a complete list of issues and you should absolutely take the time to consult with an attorney. While it can be difficult to consider these issues, once you make the proper arrangements to take care of your children, the peace of mind will be well worth your efforts.