How to Choose the Right Guardian for Your Minor Child

Post category:Estate Planning Generations Guardian Last Will and Testament

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:

Include a guardian designation in their will – This document provides clear legal authority.
Create a letter of intent – While not legally binding, it offers guidance on the child’s upbringing.
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”

Digital Assets and Estate Planning

Post category:Assets Cryptocurrency Digital Assets Estate Planning Last Will and Testament Power of Attorney

Digital assets, such as online accounts, social media profiles, cryptocurrency, digital photos, and documents, are becoming an increasingly important consideration when planning your estate. These assets are generally governed by the terms of your will and any power of attorney (POA) document, but there are specific legal rules you should be aware of to ensure everything is handled properly.

Some people keep even more assets in cyberspace: client records, patient records, inventory, customer databases, websites, blogs and cryptocurrency. There are also digital assets like non-fungible tokens, NTFs, online gaming and Metaverse assets.

With fewer than a third of all adults in the US having a last will in 2024, even fewer have planned for digital assets. Failing to plan for digital assets leaves a nightmare for loved ones when settling an estate. It puts assets at risk of being stolen or lost completely. Identity theft is also far easier when no one’s taken control of or deleted digital assets.

Start preparing for your digital demise by creating a thorough digital inventory. Include URLs for the accounts, your username and password, the account number and value and how the account is accessed. If the account requires two-factor identification through email or text, ensure that your digital executor has this information and access to the physical device.

The next step is to review which platforms allow you to designate a person to take control of your assets if you become incapacitated or die. Google, Facebook and Apple let you designate someone to be a “legacy” contact—the name of the role changes with the platform.

There are nuances to be aware of. You’ll need to decide whether you want someone to have access to the account and the ability to read its contents or just access the account to delete it. If you have private emails, documents, or electronic materials you don’t want anyone to access, you’ll need to be very specific about what you do and don’t want your designated digital person to do.

Figuring out how to manage digital assets isn’t just about what happens when you die. If you become incapacitated, would your spouse be able to pay the electric bill, access mortgage statements, or pay the phone bill?

Also, you may want to reconsider if you manage your personal life through your work email. Your work email does not legally belong to you but to your employer. Your emails can be read by anyone at your workplace with access and authority, including the IT department, supervisors and CEOs. Most employers shut down email access immediately after a person leaves their job or when they learn of an employee’s death. It is wiser to have a personal email for your personal life.

Digital assets require estate planning, just as tangible, traditional assets do. You’ll want to name an executor in your will and/or trust to manage your digital assets. Additionally, Make sure your POA explicitly grants the agent authority to manage your digital assets. If you own cryptocurrency or NFTs, talk with your estate planning attorney about protecting them as part of your estate plan.

By addressing these issues in your estate planning documents and making the proper provisions, you can ensure that your digital assets are managed according to your wishes after death or incapacity. Schedule a consultation with one of our experienced estate planning attorneys at Sims & Campbell in Annapolis and Towson, Maryland.

How to Create an Estate Plan That Works

Post category:Advance Directive/Living Will Assets Estate Planning Estate Planning Attorney Estate Tax Planning Health Care Power of Attorney HIPAA Incapacity Planning Last Will and Testament Personal Representative Power of Attorney Power of Attorney Probate Revocable Living Trust Tax Planning Taxable Estate Trusts Wills

An estate plan tells your loved ones and the courts how you want to divide your property, as well as protecting heirs from the expenses and stress created when there is no estate plan. An estate plan also saves your family from months, even years, of dealing with courts and government bureaucracies in settling your estate.

How to start? Follow these steps.

Make a complete inventory of your assets, both tangible and intangible. Your Estate is made up of different assets such as real estate, cars, financial accounts, digital assets, life insurance, retirement accounts, pension accounts and personal property. Save your heirs from a scavenger hunt and protect assets from being lost.

Decide who you want to care for your family. If you have children who are underage, name a guardian in your will. The guardian often serves as the conservator, managing the children’s financial assets. Check on your life insurance policies, which provide funds for your family after you’ve passed.

Ask potential personal representatives if they are willing to do the work. The personal representative carries out directions in your will. It can be a big responsibility. They’ll need to gather and manage assets of your estate, notify heirs, Social Security, Medicare, pay estate taxes, secure and possibly sell your home, and more.

Have an experienced estate planning attorney set up at least three key elements: a will, power of attorney, and advance medical directive.

The Will names a guardian and a personal representative (also known as an executor) and gives directions for distributing assets. The biggest estate planning mistake people make is not having a will. When this happens, the court assigns someone to manage your estate, and your family will have to live with whatever the court-appointed person decides.

A Power of Attorney allows someone to care for your business affairs if incapacitated.

An Advance Medical Directive (“AMD”) will enable you to name someone to be involved with your healthcare, speak with your doctors and health insurance company, and help make decisions for you. These documents should be customized to convey your wishes as to how much or how little you want these people to be able to do. An advanced healthcare directive is also used to state your wishes if you are incapacitated about what kind of treatment you do or do not want to receive if you are at the end of your life. This document can be challenging to consider. However, it is a blessing to spare your family from having to guess your wishes during a time of crisis.

Discuss the use of a trust with an estate planning attorney. Trusts are not just for wealthy people. Some trusts take assets from your taxable estate and distribute them directly to beneficiaries outside of probate. Many kinds of trusts serve different purposes, so your estate planning attorney will help you understand which is best for your purposes.

Determine who to leave your assets to and how to structure your estate. If you have young children and you don’t establish the correct trusts, they may inherit everything when they turn 18 or 21. This is rarely a good idea.

Tax planning is a part of estate planning. Your estate may face federal, estate, and/or inheritance taxes. Rates and exemptions are different in every state. This is why it is important to disclose all of your assets and their values to your estate planning attorney.

The incapacity planning part of an estate plan is for you. However, the rest is for your family, to take care of them and show them how much you care about them and their futures.

Contact us today to schedule a complimentary initial consultation with one of our experienced estate planning attorneys. They will walk you through our unique Sims & Campbell firm process and guide you on the next steps in creating your custom estate plan.

How Divorce Affects an Estate Plan

Post category:Advance Directive/Living Will Beneficiaries Beneficiary Designations Estate Planning Estate Planning Attorney Executor Health Care Power of Attorney HIPAA Last Will and Testament Living Will Medical Power of Attorney Power of Attorney Power of Attorney Prenuptial/Post-Nuptial Agreement Retirement Accounts Tenancy in Common Wills

Divorce changes not only a person’s financial and personal life but also the way their assets will be handled after death. Many people overlook the importance of updating estate planning documents after a divorce, which can result in unintended beneficiaries receiving inheritances or former spouses retaining control over critical financial and medical decisions. Taking the time to revise an estate plan ensures that assets are protected and aligned with post-divorce goals.

How Divorce Affects Your Estate Plan

Divorce changes personal and financial circumstances and how assets will be distributed after death. Many forget to update their estate plans, leaving former spouses as beneficiaries or decision-makers. Without revisions, an ex-spouse could inherit assets, manage finances, or make medical decisions in an emergency.

Key documents that need immediate attention include wills, trusts, powers of attorney and beneficiary designations on life insurance and retirement accounts. Updating these ensures that assets go to intended heirs and that financial and medical decisions remain in trusted hands.

Updating Wills and Trusts

A divorce does not automatically remove an ex-spouse from an estate plan. If a will or trust still names the former spouse as a primary beneficiary or executor, they may inherit assets or retain authority over the estate. Updating key documents includes:

Revising a will to name new beneficiaries and executors
Amending or revoking any revocable trusts that include the former spouse
Reviewing state laws, some jurisdictions automatically void spousal provisions upon divorce, while others do not

Failing to update these documents may lead to unnecessary legal battles or the distribution of assets against the person’s wishes.

Changing Beneficiary Designations

Many financial assets pass directly to named beneficiaries outside of a will, making beneficiary updates essential after divorce. Documents to review include:

Life insurance policies and retirement accounts, such as 401(k)s and IRAs
Payable-on-death (POD) and transfer-on-death (TOD) accounts
Jointly held assets or real estate with right of survivorship

If an ex-spouse remains listed as a beneficiary, they may still receive these assets, regardless of the divorce decree. Updating beneficiary designations ensures that assets go to the intended individuals.

Adjusting Powers of Attorney and Healthcare Directives

Divorce often necessitates appointing new individuals to manage financial and medical decisions in case of incapacity. Changes to consider include:

Naming a new power of attorney for financial matters
Revising a healthcare proxy to designate a trusted individual for medical decisions
Ensuring that living wills and advance directives reflect current wishes

Leaving a former spouse in control of these decisions can lead to unintended complications, particularly in medical emergencies.

Spousal Elective Share

Some states, such as Maryland, have a spousal elective share which allows a surviving spouse to claim a portion of the deceased spouse’s estate, even if they were excluded from the will. This is a protection for a surviving spouse who might otherwise be left with nothing due to the deceased spouse’s will or other estate planning documents. A spouse can waive the right to an elective share if they signed a valid pre-nuptial agreement or post-nuptial agreement giving up this right.

Secure Your Legacy with an Updated Estate Plan

Divorce requires more than financial separation—it demands a complete estate plan review to prevent unintended consequences. Ensuring that your will, trusts and powers of attorney reflect your current wishes is critical to protecting your assets and loved ones.

Our boutique law firm provides comprehensive estate planning services to help you update legal documents after divorce. Schedule a consultation today with one of our experienced estate planning attorneys to secure your financial future.

Key Takeaways

Wills and trusts must be updated after divorce: Failing to revise estate documents may result in an ex-spouse inheriting assets or serving as executor.
Beneficiary designations require careful review: Retirement accounts, life insurance and bank accounts should be updated to reflect new intentions.
Powers of attorney and healthcare directives should be revised: Naming a new agent ensures that a trusted individual handles financial and medical decisions.
State laws may impact estate plan changes: Some jurisdictions automatically revoke spousal provisions, while others require updating specific documents.
Proactive planning prevents legal disputes: Updating an estate plan immediately after divorce helps avoid unintended consequences and ensures that assets are distributed according to new wishes.

References: Investopedia (June 25, 2024) “Rewriting Your Will After Divorce” and Justia (September 2024) “Estate Planning After Divorce”

What Should I Know About Wills? – Annapolis and Towson Estate Planning

Post category:Beneficiaries Estate Planning Last Will and Testament

A valid last will lets you do the following:

Leave assets to people that would be excluded by the laws controlling property distribution after you die;
Change how your assets would be distributed to family members;
Establish caretakers for your children; and
Create requirements for inheriting.

Forbes’ recent article entitled, “Last Will And Testament: Everything You Need To Know,” explains that a will is a legal document created in anticipation of your death. The best known function of a last will is to determine who gets property. However, a last will can also control other things about your property and responsibilities. It’s an important tool in estate planning and one that almost everyone should create.

There are different kinds of last wills that you can create to take control of your legacy. Let’s look at some of the most common types.

Simple Will. With this last will, assets are left directly to beneficiaries. Simple wills are easy to write in most cases, and you can amend them as needed over time. They are a sound choice for those who don’t have children from a prior marriage, who do not have a lot of assets and who do not have concerns about anyone challenging their last will and testament.

Complex Will. This will is used if you have more specialized needs, such as creating a testamentary trust, which is created within your last will. You create the testamentary trust to transfer ownership of assets into a trust instead of directly to beneficiaries. A complex last will can also be used to create a special needs trust (to leave assets to a person with disabilities who relies on means-tested government benefits) or to create a protective trust for your child.

Holographic Will. A holographic will is handwritten by the creator of the last will (known as the testator). This type of last will isn’t recognized in all states. A holographic last will must also often meet specific requirements, such as the last will being signed by witnesses present when the testator signed the document.

Living Will. This is much different from the other kinds of wills. A living will does not specify who inherits assets, but rather is aimed at making advanced decisions about medical care. When you create a living will, you specify what kinds of medical care you do and do not want if decisions must be made while incapacitated.

Questions? Contact us to schedule a complimentary initial call with one of our experienced estate planning attorneys.

Reference: Forbes (May 18, 2023) “Last Will And Testament: Everything You Need To Know”

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

- ‘A goal without a plan is just a wish’ written on a blackboard. Blurred styled background.

Estate Plans Require Preparation for Success – Annapolis and Towson Estate Planning

Post category:Estate Planning Health Care Power of Attorney Last Will and Testament Power of Attorney

Making wishes clear to family members is never enough to satisfy legal standards, according to a recent article, “Preparation is essential part of estate plan” from The News-Enterprise. Quite the opposite occurs when family members refuse to follow verbal requests, especially when personal grievances come to the surface during times of grief.

A second misconception concerns the spouse or children being able to step in and take action for a loved one solely based on the family relationship.

Many parents have children who would make poor agents, so many don’t name their children to act on their behalf. Even if you want your spouse or child to act on your behalf, you have to name them in the proper legal documents.

A third frequent misconception is that documents can be created when needed. Not so! Documents like Power of Attorney, Health Care Power of Attorney, Living Will and others must be created well in advance. An incapacitated person cannot sign legal documents, so if no planning has been done, the family will have to petition the court to name a guardian—an expensive, time-consuming and complicated process.

Every adult should have three basic documents while they are in good health: a Health Care Power of Attorney, a Durable Power of Attorney and a Last Will and Testament.

The Health Care Power of Attorney gives another person the right to make healthcare decisions for you if you are unable to do so. It also gives another person the right to access protected health care information, including medical and health insurance records. It may also be used to authorize organ and/or tissue donation and set limitations for donation. Finally, the document may direct end-of-life decisions regarding artificial life support.

The Durable Power of Attorney allows another person to handle legal and financial matters. It can be effective upon signing or upon incapacity. Without correctly executed Powers of Attorney, the family will need to apply for guardianship.

The Last Will and Testament determines who should receive any specific property and how your property is to be divided and distributed. Wills are only effective upon death, so any property in the will continues to be yours until death. Wills are also used to name the executor who will be responsible for administering the estate. It can also be used to set up additional protections for disabled beneficiaries, minor children and others who are not good with finances.

Speak with an experienced estate planning attorney to be certain to have these essential documents to prepare for the times when life doesn’t go as expected. Preparation is key to protecting yourself and those you love.

Reference: The News-Enterprise (May 13, 2023) “Preparation is essential part of estate plan”

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

Word text Make a will on white paper on office table / business concept

What Happens When There’s No Will? – Annapolis and Towson Estate Planning

Post category:Assets Beneficiary Designations Estate Planning Executor Intestacy Last Will and Testament

According to a recent article, “The Confusing Fallout of Dying Without a Will,” from The Wall Street Journal, despite the consequences for their heirs and loved ones, millions of Americans still don’t have a will. The total wealth of American households has tripled over the past thirty years, according to the Congressional Budget Office. Still, more than half of Americans polled by Gallup said they didn’t have a will in 2021. Another survey showed that one in five Americans with investible assets of $1 million or more don’t have a will.

Dying without a will means the laws of your state will determine who gets your assets. In some cases, loved ones could end up with nothing. They could be evicted from the family home and even hit with massive tax bills.

This is especially problematic for unmarried couples. One example—after 18 years of living together, a couple had an appointment with an estate lawyer to create wills. However, the woman died in a horseback riding accident just before the appointment. Therefore, her partner had to get the woman’s sons, who lived overseas, to sign off, so he could be appointed her executor. The couple had agreed between themselves to let him have the home and SUV they’d purchased together. However, state law gave her sons her 50% interest. Therefore, he had to buy out her son’s interest to keep his home and car.

Dying without a will, or “intestate,” means you can’t name an executor to administer your estate, name a guardian for minor children, or distribute the property as you want.

Here’s what you need to know about having—or not having—a will:

State law governs property distribution. In some states, where there is a surviving spouse and children, the surviving spouse gets 100% of the estate, and the children get nothing. The surviving spouse gets 50% in other states, and the children divide the estate balance. For example, in Pennsylvania, if there are no children but there is a surviving parent, the surviving spouse gets the first $30,000, and the balance is split 50/50 with the parent. In Tennessee, a surviving spouse with two or more children receives a third of the estate, with the rest split between the children.

Check on all assets for beneficiary designations. Retirement accounts and life insurance policies typically pass to whoever is listed as the beneficiary. However, if you never named a beneficiary, the state’s laws will determine who receives the asset.

If you don’t have a will and want to be sure a partner gets these assets, you’ll need to speak with an experienced estate planning attorney to explore your options. For example, you might be able to use a transfer on death deed or a payable on death account. However, there may be better ways to accomplish this goal.

Reference: The Wall Street Journal (May 2, 2023) “The Confusing Fallout of Dying Without a Will”

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

Will In-Laws Inherit If I Don’t Have a Will? – Annapolis and Towson Estate Planning

Post category:Estate Planning Inheritance Intestacy Last Will and Testament

State inheritance laws prioritize spouses, children and other blood relatives ahead of in-laws. However, how those individuals handle their share of an inherited estate can determine whether an in-law receives any assets.

Yahoo’s recent article, “Can I Leave Inheritance Money to In-Laws?” explains that state inheritance laws say who can be an estate heir. These individuals are typically directly related to the decedent by marriage, blood, or adoption. In order of priority, people who can inherit from someone under state law include spouses, children, siblings, parents, grandchildren, aunts and uncles and cousins.

However, an in-law may get some of an estate if they marry a direct heir.

You can leave assets to your in-laws if you want them to inherit from your estate. The easiest way to do this is to leave instructions in your will as to what assets they should inherit. You could also ask an experienced estate planning attorney about creating a trust to give assets to in-laws.

Some people may want to leave something to a son or daughter-in-law. However, others may seek to exclude them from inheriting altogether. To protect an inheritance from in-laws, you can create a trust that allows you to leave assets to family members. In addition, the trust can state that anyone not a blood relative can be excluded from receiving assets.

A prenuptial agreement for your child is another option. This might have terms that state how assets you pass on to your child should be handled during your lifetime and beyond. You could also raise the prospect of a postnuptial agreement after they’re married. The document would dictate what happens to their assets (and anything they’ve inherited from you) if they are divorced.

Every family situation is unique, and you might have questions about where in-laws fit into your estate plan. Ask an experienced estate planning attorney to discuss this with you.

Questions? Contact us to schedule a complimentary initial call with one of our experienced estate planning attorneys.

Reference: Yahoo (Jan. 8, 2023) “Can I Leave Inheritance Money to In-Laws?”

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

Sims & Campbell Estates and Trusts

What are the Consequences of Dying Without a Will? – Annapolis and Towson Estate Planning

Post category:Estate Planning Executor Inheritance Intestacy Last Will and Testament Personal Representative

Someone who dies (the “decedent”) with a legal will is known to have a testate inheritance. As such, their assets are distributed according to their will. A person who dies without a legitimate will has an intestate estate. Their assets are distributed according to the laws of inheritance.

Yahoo’s recent article, “What Happens If I Die Without a Valid Will?” says that estate planning is a local area of the law, so specific rules governing estate planning vary greatly from state to state.

When you die, all of your property is called your estate. If you die with a valid and enforceable will, then your estate is distributed in the following way:

First, all attorney’s fees related to managing your estate are set aside for payment;
The person managing your estate (the executor) then pays any debts that you had with the assets in your estate;
Finally, after paying off all debts, your estate is distributed according to the instructions in your will.

Liabilities don’t transfer through an estate, so while you can inherit someone’s property, you can’t inherit their debts. However, debts can affect an inheritance in several ways. The first case is when liabilities transfer with the property. Therefore, if the decedent owed unpaid property taxes or a mortgage on their house and then left you that property if you wanted the house, you’d also have to take responsibility for paying those debts. If you don’t, the executor will sell the house, settle the debts and transfer any remaining money to you.

Second, liabilities can reduce a potential inheritance. Here, if someone leaves you $100,000 in their will but also has $40,000 in unpaid debts, you’d only get $60,000 because that’s what would be left. If the debts exceed the estate’s value, the individual dies insolvent, and their heirs would get nothing.

Other than managing liabilities like debt and taxes, a person can use their will to distribute their assets in almost any way they want. It’s important to understand this because many think family members automatically have a right to inherit money or property. This isn’t so.

Reference: Yahoo (Jan. 27, 2023) “What Happens If I Die Without a Valid Will?”

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

Use Estate Planning to Prepare for Cognitive Decline – Annapolis and Towson Estate Planning

Post category:Alzheimer's Disease Dementia Estate Planning Last Will and Testament Power of Attorney

Since 2000, the national median age in the U.S. has increased by 3.4 years, with the largest single year gain of 0.3 years in 2021, when the median age reached 38.8 years. This may seem young compared to the life expectancies of older Americans. However, the median age in 1960 was significantly lower, at 29.5 years, according to the article “Don’t Let Cognitive Decline Derail Well-Laid Financial Plans” from Think Advisor.

An aging population brings many challenges to estate planning attorneys who are mindful of the challenges of aging, both mental, physical and financial. Experienced estate planning attorneys are in the best position to help clients prepare for these challenges by taking concrete steps to protect themselves.

Individuals with cognitive decline become more vulnerable to potentially negative influences at the same time their network of trusted friends and family members begins to shrink. As people become older, they are often more isolated, making them increasingly susceptible to scams. The current scam-rich environment is yet another reason to use estate planning.

When a person is diagnosed with Alzheimer’s or any other form of dementia, an estate plan must be put into place as soon as possible, as long as the person is still able express their wishes. A diagnosis can lead to profound distress. However, there is no time to delay.

While typically, the person may state they wish their spouse to be entrusted with everything, this has to be properly documented and is only part of the solution. This is especially the case if the couple is close in age. A secondary and even tertiary agent needs to be made part of the plan for incapacity.

The documents needed to protect the individual and the family are a will, financial power of attorney, durable power of attorney and health care documentation. For families with more sophisticated finances and legacy goals, trusts and other estate and tax planning strategies are needed.

A common challenge occurs when parents cannot entrust their children to be named as their primary or secondary agents. For example, suppose no immediate family members can be trusted to manage their affairs. In that case, it may be necessary to appoint a family friend or the child of a family friend known to be responsible and trustworthy.

The creation of power of attorney documents by an estate planning attorney is critical. This is because if no one is named, the court will need to step in and name a professional guardian. This person won’t know the person or their family dynamics and may not put their ward’s best interests first, even though they are legally bound to do so. There have been many reports of financial and emotional abuse by court-appointed guardians, so this is something to avoid if possible.

Reference: Think Advisor (April 21, 2023) “Don’t Let Cognitive Decline Derail Well-Laid Financial Plans”

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

How to Choose the Right Guardian for Your Minor Child

What Does a Guardian Do?