Estate planning aims to prepare your property for your passing. We all think that won’t occur until we’re older when our children are out of the nest and on their own. However, for couples with minor children, a well thought out and constructed estate plan may be more important than you think.
Many childless San Diego couples will provide provisions for pets and property, but what about children? Who will care for children if both parents are gone? This person is called a “guardian,” and can be named in your estate plan. It is important to discuss this with your spouse or your child’s other parent, as well as anyone you are considering to care for the child. Next, make sure the guardian is named in your will or trust to supervise the child and manage the child’s assets until he or she reaches the age of maturity, and the guardian is aware of this. The law would not allow for a child under 18 to care for him or herself if both parents die. With no instructions left, this leaves little direction to the courts or family members and could result in a months-long court battle between well-meaning family members to decide who is to care for the children.
The child’s assets are another concern, as many leave the bulk of their estates to their children. Setting up a trust may be the best option. It allows you to nominate someone to manage the assets, and distribute them for certain needs of the child until an age you elect, typically 18, 21, or 25. There are other possibilities and ways to prepare for your child’s financial future, and a good estate planning attorney and financial advisor are an important step in the process.
