Because They Are Counting on You

Children are a blessing. Gone are the relaxing days of leisure, replaced by diapers, binkies, visiting grandparents, disappearing sleep and anything resembling your prior life. Yet there is no way you would give it up. Your child needs you. There is only one you; however, life is unpredictable. Things happen. If something happens to you, how do you want your children raised? What types of values are important to you?

Having an estate plan in place will allow you to guide your children as they grow, even if you can’t physically be there to do it yourself. An estate plan isn’t only for the wealthy. It is for anyone who wants to provide for and protect family and loved ones.   

Raising the Kids

Instilling strong values and teaching life lessons is one of the most important roles you play in your child’s life. Generally, if something happens to one parent, the other parent will continue to raise your children. What happens if something happens to both of you, though? Who is the right person to raise your children? Does this person share your values? Do they have the right personality and temperament to parent your children in the manner you desire?

As you think about who will raise your children, consider the person’s parenting and social skills, as well as whether they will strive to maintain relationships with each parent’s extended families. Can the potential guardian manage finances well? How will the addition of one or more children affect the guardian? Can they handle the additional strain?  

It may be tough, but making the decision and putting that decision into an estate plan is much easier than having a court appoint a guardian—a guardian that may or may not have met with your approval. There is no perfect person to replace you, but some people are better equipped than others to raise your children in a manner similar to yours.

Taking Care of Finances

Kids cost money. If something happens to you, how do you want your children’s financial needs to be handled? The guardian will need additional resources, but what other aspects are important to you? Most likely, you won’t want to give youngsters a windfall as soon as they reach 18. Maybe you want to provide for college. Or assist your children’s development into motivated and productive individuals.  

Oftentimes, the guardian will have input into how money set aside for your children is used, but the person named to manage your children’s funds (known as a trustee) will ensure any funds are used to grow your children—not spoil them. The trustee will manage funds as you direct, but those directions need to be developed first.

Taking Care of You

Most people think of an estate plan as something that takes effect when you pass. Unfortunately, that simply isn’t the case. Many times, a person becomes unable to manage their own affairs because of illness, accident or other causes. Who do you want to make health care decisions for you if you are unable? Who is going to make sure your bills are paid and the house is kept up? A power of attorney allows you to name someone you trust to make health decisions on your behalf. It also allows the person to handle your business affairs—like continuing payments on your mortgage.

It is also a good idea to have a power of attorney in place for your kids that allows a grand-parent or caretaker to consent to medical treatment. Being called away from work or a getaway due to an injured child is troubling, but delaying treatment because no one has authority to consent is worse.

Putting a Plan in Place

Estate planning will require you to think about your family and relationships. Focus on the most essential legal documents first and update your plan as needed. Once you have a plan in place, you will have the peace of mind that your family is protected should something happen to you. Developing a plan now is relatively easy. Waiting until something happens, and having the court develop a plan later, is not.

Todd Rasmussen is a member of Rasmussen Law, LLC. Todd draws upon years of experience to help clients with their estate planning and business needs. In addition to being an attorney, Todd is a licensed certified public accountant.