Younger Families

Having a Will and estate plan in place allows you to guide your children as they grow up, if anything were to happen to you. For parents or guardians of young children, we are able to create an estate plan that gives you peace of mind by planning for that "what if" scenario.

Guardianship

You hold important values, such as faith or life lessons, that you no doubt want to instill in your children as their parent. While if something happens to one parent, the other may continue to raise the children, what happens if something happens to both parents? Who is the right person to raise them and do they share in your values? Do they have the right temperament and ability to guide your children as they grow older without you?

In pondering this "what if" scenario, consider this person's parenting and social skills, and whether they would maintain good relationships with both parents' extended families. Can this potential guardian manage money well, and can they handle the strain of additional children to care for? You should give careful consideration to who this potential guardian should be, ensuring he or she shares the values you want instilled in your children. If you fail to plan for this "what if" scenario, a court of law will make this important decision for you.

Conservator (Trustee)

Minor children do not have the legal ability to manage their own finances until they reach the age of majority (usually 18 years old). Because of this, it is very important to consider who you would want managing the assets that you leave behind for your minor children. These assets may be valuable family relics, equity in your home, or the proceeds of a life insurance policy. No matter what assets you leave behind, the result is the same: your children will have no say in how their inheritance is used and a court of law will decide who the conservator of their inheritance is unless you plan.

Think about who you would want managing your children's finances in your absence. Beyond their basic living expenses, what is important to you? Perhaps you want some of that money set aside to help pay for their college. Or maybe you had activities in mind that you would like your children to be able to pursue. The conservator will manage the assets for your children in the way that you direct, but you must first develop your estate plan to include those directions.

Other Thoughts

The guardian and the conservator need not necessarily be the same person, although they often are. In some situations it is advisable to use different individuals for these roles since your ideal guardian may not manage finances as well as you would like. This strategy also creates checks and balances by preventing one person from having too much influence on your children.

Having a power of attorney in place to allow a grandparent, godparent, or other trusted caretaker to make medical decisions for your children in your absence can be a good idea, even when you are still living! If your child is injured while you are traveling or working, having a power of attorney in place can prevent delayed treatment since your minor child does not have authority to consent.

If you have not done so already, we also recommend that you consider what role life insurance can play as part of a holistic estate plan. Because most parents of young children have not had enough earning years to build up any significant assets, a life insurance policy could very well be the primary asset left to young children in a "what if" scenario, providing for care, upbringing and even college long after you are gone.