Why You Need a Guardianship for Your Minor Children

(ARA) – Planning for the future sometimes means contemplating some sad thoughts. If you and your spouse were to die in a car accident tomorrow, what would happen to your children? If you don’t have a will in place, you may not like the answer.
“It’s not something we like to think about, but it’s absolutely necessary for everyone with minor children to draft a will and name a guardian within the context of that document, just in case the unthinkable happens,” says Lawrence Wiener, a member of the board of directors for the National Association of Estate Planners and Councils.
If both parents die and a guardian has not been named in the will, a probate judge will decide who takes care of your children, not you. The judge will frequently consult your family tree to make that decision, and the person picked may not be someone you want raising your kids.
Choosing the right person to raise your children is a big and emotional step that shouldn’t be taken lightly. “One way to help make the decision is to talk frankly with the people you consider prospective guardians. Their answers could help you make a united decision you can both feel good about,” says Wiener.
Here are some things you need to consider before choosing a guardian:
* Is the person you”re considering willing to take on the responsibility?
* Is the person the appropriate age? A guardian who is too young or too old might not be up to the task emotionally or physically.
* Does the prospective guardian have the time?
* Does he or she share your moral beliefs?
* Can you provide enough assets to raise the children? If not, can your prospective guardian afford to bring them up?
One way to ensure that your children would be taken care of financially in the event that you die prematurely is to set up a testamentary trust. Such a trust is created in your will and does not have to be funded or administered in your lifetime. In the event that both parents die the trust — often funded with life insurance money –comes into being.
“The nice thing about setting up a trust in your will is that you can control how and when the money will be dispersed. Your heirs wouldn’t necessarily get access to the entire estate right away, so the capital will be preserved for years to come,” says Wiener.
The trustee can be the same person as the guardian, but often is not. Don”t assume the person you choose to raise your son or daughter has to be the person who handles the child”s inheritance.
“You might conclude that the best person to stand in as a loving surrogate mother or father isn”t the ideal person to handle the checkbook. If that’s the case, you can choose another friend or relative, or even a bank trust department to manage the money,” says Michael Halloran, who is also on the board of directors for the National Association of Estate Planners and Councils.
“Peace of mind isn’t the only reason to set up a guardianship. There’s also the financial impact to consider,” he adds. “If everything has been decided ahead of time, there won’t be anything for the people left behind to fight about. Court costs can quickly add up.”
For more information on the NAEPC, or to find an Accredited Estate Planner near you, visit www.naepc.org or call NAEPC toll free at (866) 226-2224 for suggestions.
Courtesy of ARA Content