Read more about the article How to Choose the Right Guardian for Your Minor Child

How to Choose the Right Guardian for Your Minor Child

No parent wants to imagine being unable to care for their child. However, planning for the unexpected is essential. If both parents pass away or become incapacitated, a court will decide who takes custody of the child—unless a legal guardian has already been named in an estate plan. Without a clear designation, children could end up in lengthy custody disputes or with someone who does not align with the parent’s wishes.

Choosing the right guardian involves careful consideration of financial stability, emotional readiness, values and long-term commitment.

What Does a Guardian Do?

A legal guardian assumes full responsibility for a minor child’s upbringing, including:

  • Providing a stable home environment
  • Managing the child’s education, healthcare and emotional needs
  • Handling financial matters related to the child’s well-being

If a guardian is not legally designated, a court will decide based on what it considers to be the child’s best interests, which may not align with the parent’s preferences.

Key Factors to Consider When Choosing a Guardian

1. Parenting Ability and Stability

The guardian should be emotionally, physically and financially capable of raising a child. Consider:

  • Age and health – A younger guardian may have more energy, while an older relative may have more life experience.
  • Emotional capacity – Does the person have the patience and dedication required for parenting?
  • Current family dynamics – Will the child be able to fit into the guardian’s household without disruption?

A guardian should be someone who can provide a nurturing, stable and loving environment.

2. Financial Preparedness

While a guardian does not need to be wealthy, they should have the means to support a child. Life insurance policies and trust funds can help ensure financial stability. However, the guardian should be capable of managing those resources responsibly.

3. Shared Values and Beliefs

The chosen guardian should align with the parents’ values regarding:

  • Education and discipline
  • Religious or cultural beliefs
  • Lifestyle and moral outlook

Selecting someone who shares similar principles helps provide continuity in the child’s upbringing.

4. Willingness and Legal Readiness

A guardian should be willing to accept the responsibility and fully understand the commitment that comes with it. Before deciding, parents should:

  • Have an open discussion with the potential guardian
  • Ensure that the individual is comfortable with long-term caregiving
  • Formalize the decision in a legally binding document to avoid disputes

Naming a backup guardian can also provide security in case the first choice is unable to serve.

How to Legally Appoint a Guardian

To ensure that the court honors their wishes, parents must:

  1. Include a guardian designation in their will – This document provides clear legal authority.
  2. Create a letter of intent – While not legally binding, it offers guidance on the child’s upbringing.
  3. Establish financial plans – A trust or life insurance policy can provide financial security for the child’s future.

Working with an estate planning attorney ensures that all legal formalities are in place to appoint a legal guardian for minor children, preventing complications in the event of a tragedy. Contact us today to ensure that, even in the worst-case scenario, your child will be raised in accordance with your wishes.

Key Takeaways

  • A legal guardian ensures a stable future for a child: Without a designated guardian, the court decides who assumes custody.
  • Parenting ability and stability are top priorities: A guardian should be emotionally and financially prepared for long-term care.
  • Choosing someone with shared values provides continuity: Similar beliefs regarding education, discipline and lifestyle create a smoother transition for the child.
  • Formal legal designation prevents disputes: Including guardianship in an estate plan ensures that the court honors parental wishes.
  • Backup guardians provide additional security: If the primary guardian is unable to serve, an alternate can step in to avoid potential legal complications.

Reference: Forbes (Jan. 29, 2020) “10 Tips For Choosing A Guardian For Your Minor Child”

Read more about the article What Is Upstream Planning? – Annapolis and Towson Estate Planning

What Is Upstream Planning? – Annapolis and Towson Estate Planning

Estate planning with an eye to a future inheritance, known as “upstream planning,” can be especially important where families pass significant wealth from generation to generation. Knowing these details in advance can have a big impact on deciding on how to manage the heir’s own assets, as explained in the article “Expecting an Inheritance? Consider Coordinating Your Estate Plan with Your Parents’” from Kiplinger.

What happens when information is kept private? In one example, a patriarch refused to share any details, despite having children who had succeeded on their own and didn’t really need their inheritances. The family was left with an eight-figure estate tax bill.

Clear and open discussions make sense. If a person has an estate large enough to need to pay federal estate taxes, inheriting more will add to their heir’s tax burdens. Parents may choose to leave assets to heirs through a trust. Money in a trust belongs to the trust, so in addition to tax benefits, the trust is a good way to protect assets from creditors, litigation, or divorce.

Trusts are also used to take advantage of the GST—generation skipping tax exemption. The executor of the parents’ estates can apply their GST exemption to the trust, which will not be taxed when they are distributed or passed to grandchildren, even if the grandchild is a beneficiary of the trust.

Business considerations also come into play. If a couple built and grew a business now being run by their granddaughter, and the grandsons have had little or no involvement, their wishes should be clarified: do they want their granddaughter to be the sole heir? Or do they want the grandsons to receive cash or other assets or any shares of the business?

Talking about multigenerational wealth early and often provides benefits to all concerned. The more money a family has, the more it makes sense to have those conversations and not only from an estate tax perspective. Those who created the wealth can use upstream planning as a way to start conversations about their success, family values and hopes for how heirs and future generations will benefit.

In some families, these conversations won’t happen because they think it’s too private or don’t want their children and grandchildren to feel they don’t need to work hard to become responsible citizens.

Communicating and coordinating are vital to success. Your estate planning attorney will be able to provide guidance, having seen what happens when upstream planning occurs and when it does not.

Reference: Kiplinger (Oct. 4, 2022) “Expecting an Inheritance? Consider Coordinating Your Estate Plan with Your Parents’”

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Another Reason Why You Need an Estate Planning Attorney – Annapolis and Towson Estate Planning

The saying ‘you don’t know what you don’t know’ is most apt in estate planning. A well-meaning person may create a will with the goal of leaving property to grandchildren, only for the children or their parents to learn after the grandparent’s passing the law does not permit property to be transferred. A recent article titled “The Arcane Law That Could Derail Your Inheritance Plans” from yahoo! entertainment is a good example of the importance of estate planning attorneys to create effective estate plans.

The rule against perpetuities may prevent a property from remaining in the family, if it takes too long for the will’s conditions to be met.

The rule against perpetuities creates a standard for when an interest in land or property must vest. The rule against perpetuities stipulates that a will, estate plan or other legal documents intending to transfer property ownership more than twenty-one years after the death of the primary (decedent) becomes void.

This rule means a person can’t legally guarantee their grandchildren, great-grandchildren or other heirs in the future may retain ownership of the grantor’s property. This may be an obscure law. However, the problem becomes real if and when someone should challenge the will, as this is a legitimate legal argument to be made.

This is an old law dating back to 17th century England, when courts wanted heirs and descendants to be able to buy and sell land without the influence of ancestors who tried to control property over many generations. The United States adopted this law and while many legal authorities see it as being outdated, only some states have drafted modifications or new laws to change it.

In 1986, thirty-one states addressed the problem by drafting a “wait and see” approach, meaning an interest in the property must vest within ninety years of the implementation of a will or life estate. This has alleviated the limit, meaning a will or other transfer of property has nine decades to vest before it becomes void.

If your estate plan includes leaving assets for grandchildren, including real estate property, contact us to speak with one of our experienced estate planning attorneys about this admittedly arcane law. If your state is one that has not adopted the “wait and see” approach, you will be glad you prepared.

Reference: yahoo! entertainment (Aug. 20, 2022) “The Arcane Law That Could Derail Your Inheritance Plans”

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys