If you have children, you have hopes and dreams for them, and ideally, you’re also saving up for their needs as they grow. If something happens to you suddenly, who knows about your savings and your hopes? Who’s ready to step in? Protecting your children is not just about planning for camp, school, and the day to day details of their lives. Really protecting them requires making an estate plan that includes designating a guardian and setting aside assets. Read on for tips and get going.
The Right People
Though “money, money, money” tends to pop to mind with the mention of “estate planning,” the more important consideration for most of us, especially when minor children are in the picture, is “who?” As in, who would be the best guardian in case the worst happens? Who can best be trusted with assets set aside for kids? Who best understands your intentions and is prepared to carry them out? As attorney Eileen Lee Breger at Bowditch & Dewey, wisely points out, estate planning is fundamentally about “ensuring your loved ones are protected and your wishes are honored.” According to Berger, two aspects of estate planning that are especially important for families with children are:
Guardian Appointment for a Minor Child – If you have a minor child, you should name a guardian in your will in the tragic event you pass away before the child reaches age 18. This can potentially avoid conflict when two sides of the family want to serve as guardian.
Trust for a Young Child – In the event you pass away while your child is a minor or before an age they can manage assets on their own, you need to set up a trust for the benefit of the child and name a Trustee to manage the trust funds. Include a letter of intent to the Trustee that provides guidance on how and when the funds are to be used.
Note that although setting up a trust can be an important way to earmark and safeguard assets for a child, the designation of a guardian can only be done through a will. At the Estate Planning Law Group of Georgia, Jim Miskell offers these pointers on appointing a guardian for minor children:
Before naming a person to this role it is important to have an honest conversation with potential candidates, however. While your own parents are those most likely to share your parenting values and style, their age might be cause for concern. One solution is to name substitute guardians who you, of course, will want to also ensure share your goals. The role of legally appointed guardian comes with fiduciary responsibility which means that the appointed person may be held liable if found to have acted otherwise than in your children’s best interest.
If you are not sure about who could be a guardian for your children, you may find the National Guardianship Association’s information about professional guardianships helpful. It’s also useful to know that for the well-being of children, courts often require the designated guardian to post a type of surety bond referred to as a guardianship bond. The purpose of a guardianship bond is to protect the interest and affairs of the ward in accordance with applicable state laws. With national, digital and direct service, Colonial Surety Company makes it easy to obtain a guardianship bond efficiently and quickly. At Colonial the steps to obtain a guardianship bond are easy: get a quote online, fill out the information, enter a payment method, then just print or e-file the bond from anywhere, anytime. Obtain a Guardianship Bond Here.
Good To Consider
As you plan ahead for the well-being and security of your children, legal experts advise addressing not just how they will be cared for if you die, but also how they will be supported financially. Choosing an appropriate life insurance option can be daunting, but the right estate planning lawyer can also help you with this task, ensuring that your children receive distributions as they grow. You’ll find more help with estate planning basics here.
Family and Estate Law Practice?
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