Dealing with adult children when planning an estate is one thing. If your offspring are below the age of 18, special provisions must be made to ensure that they are taken care of if something should happen to you. While money from a life insurance policy will undoubtedly be much-needed and important, you also need to consider their day-to-day care. Read on to find out more when considering minor-aged children and your estate plan.
Financial Considerations and Children
Children under the age of majority (usually age 18) cannot legally receive money by inheritance. You can, however, set aside funds for them using a trust. A trust can be set up with provisions on how you want the funds to be disbursed, and you can choose a trustee to administer the account until your child is 18. You are free to appoint anyone you wish as trustee, even if you are still married or in a relationship with the child's parent.
Custodial Considerations
If you are still with the other parent of the child, they will automatically gain full custody of the child. If you are divorced and have custody of the child at your death, your ex may still gain full custody of the child unless you take action. If you don't want that to happen, you must be prepared to show good cause why your ex is not fit to have custody of the child. Judges are predisposed to place a minor child with the other biological parent in most cases. That means that you must not only designate a guardian but you must add information within the guardianship paperwork indicating the reasons for your choice and why the other parent is not fit to care for the children. For example, you may include proof of the ex being arrested for child abuse or other wrongdoings. You can cite court documents from your divorce or custody hearings, police reports, or child study results.
The Guardianship Process
You can make the process of appointing a guardian a lot less stressful if you take the following steps:
- Speak with any potential guardians about your wishes in-depth and let them know what you expect of them if they agree to accept the guardianship duties.
- If your child is older, it's perfectly fine to discuss this issue with them ahead of time and take their own opinions into consideration.
- Like all estate planning, this issue deserves a review every year or so to make sure that your wishes are still valid and up to date.
To find out more about dealing with minor children and estate planning, speak to an estate planning attorney.
