California Estate Planning When Young Children are Involved
Posted by Janet Brewer on Tue, Jul 13, 2010 @ 12:55 AM
Estate planning to protect your kids
Kids change everything. Parents are used to that, but not all parents know what changes they need to make in their estate planning to protect their kids. Depending on the children’s ages, different considerations in California estate planning may need to come into play.
And remember: it’s better to have an imperfect plan in place than no plan at all – it’s better to have 90% of “something” than 100% of “nothing” in place.
Naming a guardian
If something were to happen to happen to both parents, your children must be looked after. If you have not named a guardian for your children, it could be disastrous. This step is important, and it should not wait. Even if you change your minds about who should be the guardian for your children, you can change the children’s guardian by updating your wills.
Plan for the almost-worst-case scenario. Imagine a tragic accident that takes the life of one parent and leaves the other incapacitated. If a guardian is only named in a will, then it does the children no good because it has no legal effect. Plan for appointing a guardian in case you are disabled. In many states, including California, you can appoint a “stand-by” guardian for your children. If you aren’t sure of how to do this talk to your estate planning lawyer.
Dividing duties may be in everyone's best interests
Good parenting skills and good money management don’t always come in the same package. You should think about dividing the duties. It is often better to have one guardian solely in charge of the children’s well-being (a “guardian of the person”) and another in charge of the money that’s been set aside to care for them (a “guardian of the estate”).
Regardless of who you name as guardian, make sure that person knows your wishes and is educated about your children. Make sure the person you’ve chosen is willing to take on the responsibilities. Unfortunately, I’ve seen situations where the people who were named guardians never knew it until the children were nearly at their doorsteps. Ask permission and educate the guardian about important preferences you may have, such as religion, parenting philosophy, and disciplinary beliefs.
All the best,
