Few experiences make people more aware of their mortality than having children. People who may have previously invested very little time in thinking about the future may suddenly become preoccupied with concerns about what could happen.
The idea of leaving minor children alone in a cruel and unpredictable world can make many parents quite anxious. Becoming a parent is therefore one of the most common motivations people cite for their decision to establish an estate plan. People with children want to ensure that their progeny have support should anything happen to them while their children are still young.
What estate planning matters do parents generally need to address to ensure the well-being and happiness of their children?
Selecting a guardian
The idea that children could end up in foster care is an unpleasant one. Parents don’t want a total stranger or a series of different strangers raising their children. Nominating a specific, trustworthy individual to serve as guardian for the children is a key element of estate planning as a parent. Parents can choose friends or family members to take legal authority over their children should the worst come to pass. A will is usually the most effective means of naming a guardian for minor children.
Preserving their inheritance
Parents often want to name their children as their main beneficiaries in an estate plan. However, minor children technically cannot inherit property directly. Instead, the guardian or surviving parent caring for them typically manages their inheritance until they turn 18. Parents may decide to fund a trust as a means of setting aside resources for their children that a guardian cannot access or misuse. Trusts allow parents more control over what happens with their assets and can facilitate the preservation of resources until their children become adults.
Preventing family hardship and limiting conflict
Establishing powers of attorney and advance medical directives can also be smart estate planning moves for concerned parents. They can ensure that someone has the necessary authority to pay bills and make medical decisions on their behalf. Doing so limits the family’s vulnerability and the likelihood of conflicts among immediate family members. An advance medical directive clarifying personal medical preferences can also be important for limiting conflict and uncertainty in the event of a medical emergency.
Those who take the time to establish robust estate plans can protect their children from a broad assortment of difficult scenarios. Both testamentary documents and documents that take effect in the event of an emergency can help protect children. Parents who establish comprehensive estate plans can enjoy the peace of mind that comes from knowing their children will benefit from certain kinds of support regardless of what happens.