Estate planning for parents is more than just equitably allocating assets for your child or children. For families with minor (under 18) children, one of the most critical aspects of estate planning is designating a guardian for your child. As you’re considering establishing a trust, writing a will, or indicating your preferences for a Medical Power of Attorney, remember to ask your estate planning attorney about establishing a legal guardian for your child.
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The Importance of Estate Planning
Estate planning when you have a minor child is important because you can set up the plan to pass your financial assets to them to ensure that they are safe and cared for should one or both parents pass. Some families may establish a college savings account or trust to provide for their children – but all parents should designate a guardian for their child; otherwise, the child could become a ward of the state, or a judge may appoint their guardian – and that individual may not be the person you’d prefer.
What Does Estate Planning With Minor Children Entail?
Each family’s composition, financial situation, and goals differ, so your estate planning lawyer should develop your estate plan based on your needs, preferences, and obligations.
However, there are several key components for a robust estate plan that covers all eventualities:
- Wills and Trusts: A will allocates assets to your beneficiaries, including your children. A trust protects assets from creditors and taxes and can be used to protect or preserve certain assets or provide a steady income for a child or someone with special needs.
- Guardianship Nominations: This is the legal appointment of a guardian for your minor children. If you have an adult child with special needs, you may also need to designate a guardian for them.
- Powers of Attorney: A Power of Attorney (POA) authorizes certain individuals to make decisions about your finances, health care, or both should you be incapacitated.
- Healthcare Directives: Unlike a medical POA, this document indicates your wishes regarding medical treatment and care.
Texas Estate Laws are Complex. An Estate Planning Attorney Can Help
Some families may download online forms to nominate a guardian or perform other estate planning tasks. However, these forms cannot replace the bespoke advice of an experienced estate planning attorney and are not always up-to-date.
An estate planning lawyer creates your estate plan according to current Texas law, focusing on your responsibilities and assets. They also consider various scenarios and ensure you and your children are protected.
Special Considerations For Estate Planning With Minor Children
Establishing a guardian, someone you and your child’s other parent choose, can ensure that your child is raised the way you prefer, such as in your religion, according to your values, etc.
Be sure to talk to your presumptive guardian before designating them in your will; however, ensure they have the resources to care for your child and are aware of the responsibility.
The next step is preserving your child’s inheritance. A trust is an excellent way to help your child’s guardian provide for your child, especially if you want your child to go to college, attend a private school, or even pay for their basic needs.
Choosing the Right Estate Planning Firm
Although you and your child’s other parent may be in good health now, an accident can happen at any time. Be sure you’re protected with the help of an experienced Estate planning attorney.
