Planning for minor children in your estate ensures that their well-being stays protected after you’re gone. If you have children under 18, you must make decisions about guardianship, financial management, and more. Here’s how to make sure you put everything in place.
Designating a guardian
Selecting a guardian for your minor children is one of the most important decisions you’ll make. A guardian will care for your children if you can’t. Choose someone who shares your values, parenting style, and has the financial stability to handle the responsibility. Have an open conversation with the person you choose to make sure they understand the role and agree to take it on.
Setting up a trust for your children’s inheritance
A trust lets you control how your assets get distributed to your children after you pass. Minor children can’t legally inherit until they reach adulthood, so a trust helps ensure someone manages your assets until your children are old enough to handle them responsibly. Set the age at which they’ll receive the funds, and add any conditions you want to be met.
Appointing a financial guardian
Along with a physical guardian, consider appointing someone to manage your children’s finances. This person will ensure that the trust funds get used properly for your children’s needs, such as education, health care, and activities. Pick someone you trust completely because they’ll manage the financial aspects of your estate.
Reviewing your life insurance policy
A life insurance policy can provide essential financial support to your children if something happens to you. Ensure your policy covers enough to support your children’s education, living expenses, and health care. Name the trust as the beneficiary to make sure the life insurance funds get managed for your children.
Keeping your estate plan updated
As your children grow and your life changes, update your estate plan. Review your plan regularly, especially after life events like the birth of another child, changes in your financial situation, or a move to a new state. Keeping your plan current helps ensure your children’s future stays protected.
Planning for minor children in your estate requires time and careful thought. By making the right choices now, you can rest easy knowing your children will be cared for and provided for after you’re gone.