As a parent, one of the most important things you can do is plan for your children’s future – especially if they are still minors. Whether you are concerned about who will care for your children or how their finances will be managed, proper planning ensures that your wishes are honored and that your children are protected in the event something happens to you.
Guardianship
The most important decision in planning for minor children is selecting a person you trust to step in and care for your children if you’re no longer able to do so yourself due to death or incapacity.
If you do not designate a guardian, the court will make this decision for you, and it may not align with your wishes. So, it’s important to have the right documents in place to ensure your guardianship wishes are clearly outlined.
Designating a preferred guardian lets you rest assured that your children will be cared for by someone you trust, preventing disagreements among family members and ensuring that your children are placed in a stable and loving home.
Trust for Minor Children
A Trust can ensure that your children are provided for financially, both during their minority and after they reach adulthood. If you leave a lump sum of money to your children directly, the court may intervene and manage those assets until your children are legally able to do so.
A Trust allows you to control how and when your children will receive their inheritance, avoiding court intervention, and ensuring their financial well-being.
Leaving money in a Trust lets your family bypass the lengthy and costly probate process, which can delay access to your children’s inheritance. The Trust also lets you decide who will manage the assets, providing that personal touch to ensure your money provides for their best interests. And you can specify when your children will receive their inheritance, such as at certain ages or after a particular milestone, like graduating college.