Articles

New Year’s Resolution

Ask Attorney Alexis:

Q: My New Year’s Resolution this year is to finally do whatever I need to so that my children would be taken care of and protected in the event of my death or disability. How do I begin and what should I do?
- Concerned Mother of Three

Dear Concerned Mother of Three:

Our children are our greatest treasures. Yet 74% of parents don’t even have a Will and of the 26% who do, most have made 1 of 6 common mistakes that leave their children at risk. Usually, it’s because of procrastination or lack of information, so congratulations for taking the first steps to getting the information you need. If you are not sure whether you need to plan, ask yourself the following questions:

1. Who would the state pick to raise my children if my spouse and I become disabled or die? Is it the same person I would choose?
2. Will my financial assets transfer to my children without court intervention, and in a way that is private and minimizes expenses and delays?
3. Do I have a plan that protects my children from potentially squandering their inheritance (or having it taken by creditors or predators) before they are financially mature?
4. How will my children learn my important family values if I am not here to teach them?

If you don’t know the answers to these questions, don’t like the answers or your current estate plan doesn’t answer the questions, you’ll want to find a lawyer who has particular expertise in planning for and protecting minor children.
A well drafted comprehensive estate plan for parents of minor children should address all of the above concerns and more. Without appropriate legal documents in place, the court could appoint “back-up parents” that you would never choose; your children’s inheritance could be subject to unnecessary court supervision or could be mismanaged; and your young (and impressionable) children could be left without financial guidance, to possibly squander or be swindled out of the benefits you worked so hard to provide.
Every family situation is different, but here are some general guidelines to best protect your children:

1. Legally document people who share your life priorities, and who will love your children the most as the legal guardians of your kids and make sure you name guardians for both short-term and long-term. Make sure your plan documents your values so that your guardian will know how to raise your children.
2. Set up at trust for your children’s inheritance to avoid court intervention, publicity and needless time, delay and expense.
3. Appoint a trustee or financial parent who is appreciative and understanding of your child’s needs, and your family’s lifetime goals.
4. Provide guidance to your child’s back up financial parent about how and when to disburse your assets to prevent your child being afflicted by ‘Affluenza.’
5. Consider creating lifetime trusts that leave your assets to your heirs protected from creditors, estate taxes and predators for multiple generations.

We all have great expectations for our children. A well-drafted, expertly counseled plan can substantially increase the chances that your expectations for their futures will become a reality even in your absence. You will sleep better at night knowing that even if something should happen to you, your children will be taken care of by those who you have chosen, and who love them most. Begin today to protect your most precious investment.

­