Many young people may not often think about estate planning as something they need to engage in for quite a while. Once they have their first child, however, they may start to think differently.
One important aspect of estate planning for parents of children under the age of 18 involves the selection of a guardian in the event that both parents die while the children are still minors.
Factors to consider when evaluating potential guardians
Parents may immediately think about naming a close family member, like a sibling, as their children’s guardian. Forbes recommends that people give consideration to friends as well as a biological relationship does not always result in selection of someone capable of doing the job. A person’s physical, mental and financial health status should be considered as some of the important factors involved in determining whether or not they may be able to raise someone else’s children.
According to WhatToExpect.com, parents should proceed with caution when selecting a married couple to be their children’s joint guardians. Divorces can and do happen, making it wise to then stipulate which of the two spouses the child may live with if the joint guardians later divorced.
Financial guardians may be different
Raising another person’s children certainly requires a financial commitment. Some families find it beneficial to name one guardian to be in charge of raising the children and a separate guardian to tasked with managing the finances and estate that provides funds for the raising of the children. This may help prevent any conflict of interest and allow the two guardians to work together for the good of the children.