An estate plan is especially important for parents of children under the age of eighteen. Nobody enjoys talking about “what if” scenarios, but not having a plan can result in a more challenging situation for your surviving family to navigate in the event of your death. Not having a plan will also ultimately cost your estate more money (that you would likely prefer to go to your children or other beneficiaries rather than to estate administration costs). Having an estate plan can implement cost savings measures and provide you with an opportunity to make important decisions regarding the care of your children and the management of their inheritance.
An estate plan allows parents to choose and nominate the most appropriate guardian to care for their children in the event of their deaths. As a parent, you are in the best position to make a decision regarding a suitable guardian for your family’s unique needs and an estate plan allows you the opportunity to communicate your wishes. In the absence of an estate plan, a court will not have the unique knowledge that you have regarding whether an individual is the best possible choice for a guardian of your children. Your estate planning attorney can help you navigate the conversation about factors you should consider in choosing a guardian.
An estate plan also provides parents with an opportunity to decide who should manage their financial assets and property until their children are an appropriate age to manage them on their own. This goal is accomplished by creating a trust and selecting a trustee. Sometimes the trustee is the same person that the parents have selected to be the guardian, but not always. Your estate planning attorney can assist you with your conversation about who should serve as trustee and about trust provisions you can select to best reflect your family’s goals and values.