A simple will executed by each parent is a common method used to protect minor children. A will is the only legal avenue (without court intervention) where parents can nominate a legal guardian for children under 18.
So, who should you nominate as a guardian? Beyond recommending someone you trust and respect, here are some other factors to consider:
·
Guardian’s Location—Will a guardian’s location require
a change of schools for your children; will the location allow your children to
remain close to existing friends and family?
·
Guardian’s Values—Does the guardian share your
core beliefs, a similar philosophy in raising children, religious views, etc.?
·
Guardian’s Suitability—If a guardian has
children of their own, could they care for your children too; does the child
already have a good relationship with the prospective guardian?
Once a guardian is chosen, the next question is how financial
assets should be held to best benefit your children. A testamentary trust, formed in a parent’s
will, is a great tool to hold such assets.This type of trust secures assets left for your children and can specify an age or ages for asset distribution. Many parents distribute a percentage of a child’s share every few years, minimizing potential excessive spending of an inheritance at one time. Without a testamentary trust, all assets are distributed when the child is no longer a minor. To oversee this trust, you may nominate the above-named guardian, a financial institution, or an entirely different person/entity.
Protections for younger children are absolutely vital. Whether that means completion of a simple will or other estate planning options, this issue deserves consideration by you and your family.
