Secure Your Most Valuable Treasure: Your Children
Every parent wants to ensure their children are cared for, no matter what. If something happened to you, would you rather choose your children’s guardians—or leave that decision to a judge who doesn’t know your family?
When it comes to estate planning for parents of minor children, there are three critical questions to address:
#1: Who Will Care for Your Children?
If one biological parent is living, they will typically remain the child’s guardian—unless a court determines they are unfit. But if both parents pass away or are deemed unfit, a guardian must be appointed by the court.
You can and should make that decision in advance. When choosing a guardian, consider:
- Do they share your values, beliefs, and parenting style?
- Do your children already have a strong relationship with them?
- Will your children need to relocate, or can they remain in a familiar environment?
- Will this be a smooth addition to the guardian’s life—or a major disruption?
- Should you name only one person, in case of divorce or death?
- Have you asked them if they’re willing to take on the role?
- Do you have an alternate guardian just in case?
#2: Will Your Finances Be Enough?
Raising a child is expensive. Estimates suggest that the cost of raising a child through age 18 can approach $750,000—especially when including childcare, extracurricular activities, and college. Even basic care averages $14,000 per year.
Ask yourself:
- Will your chosen guardian be able to cover those costs on their own?
- How would they feel about the financial burden?
Life insurance is a common and effective solution to bridge the gap. We’re happy to coordinate with your agent or help you find the right coverage to ensure your child’s future is secure.
#3: Who Will Manage the Money?
Managing your child’s inheritance is a huge responsibility. Even if the biological parent is alive, you may not want them to control the funds. And while your chosen guardian might be a loving caretaker, managing money introduces potential conflicts of interest.
Here are your options:
- Appoint a trusted family member or friend: They’ll know your values and likely understand what you’d want—but they may lack the time or expertise to manage large sums effectively.
- Appoint a professional fiduciary (like a bank or trust company): They bring experience, neutrality, and oversight—but they won’t have a personal connection to your child.
- Combine both: This approach offers the best of both worlds—a trusted loved one provides personal insight while a professional trustee handles the financial management. This balance helps protect your child while honoring your values.
Bonus: When Should Your Child Inherit?
If your child turns 18 and there’s money left, should they receive it all immediately? Most 18-year-olds aren’t ready to responsibly manage a large inheritance. You might prefer to limit spending to essentials or stagger distributions—perhaps a portion at 25, and the remainder at 30.
Protecting your children’s future—both emotionally and financially—is one of the most important decisions you can make.
We’re here to help you choose the right guardians, set up the proper financial protections, and create a plan that gives you peace of mind knowing your children will be taken care of, no matter what.
Caring for Your Children After You’re Gone
Power of Attorney, Healthcare Agent, and More
