Archives for February 2022

As a busy parent, I know it’s easy to get lost in the everyday activities of having kids and put things like estate planning on the back burner. We are young, we will surely be around to see our kids graduate high school, go to college, and meet our grandkids, right? But sadly, life is unpredictable and not promised. This is why it’s important to move your estate planning off the back burner, and make sure you have all the proper steps in place to protect your children, and family, for when you pass.Estate planning is about protecting the people you care about in the event of your disability or death. If you have minor children, there are many important estate planning considerations you will want to think through to make sure your estate passes to them without problems. For example, do you have a plan for what would happen if one or both parents passed? Who would take care of your children and where would the money come from to provide for them? What if you have a child with special needs, who will manage their medical care?You will want to make sure that the proper legal documents are in place so someone else can quickly step in to pay the bills, manage the daily routine for your children, help with any medical decisions, and make sure your assets get to the people you’ve designated. Most importantly, this type of estate planning is providing instruction and guidance for the guardianship of your minor children.Parents with young children should strongly consider drafting an estate plan that ensures their estates are administered according to their wishes, and that their children will be cared for financially and be placed with an appropriate guardian.Is estate planning necessary when having minor children?Yes, for one extremely important reason: in Arizona, a properly executed Last Will & Testament is the only way to name a guardian for your children. If the nominated person is willing and able to serve after a background check, they will most likely be appointed as guardian.Parents often choose grandparents, aunts, uncles, siblings, or close friends to serve as guardians. Anyone 18 years or older can be nominated and appointed as a guardian. Keep in mind that a guardian is required to ensure that all the minor child’s needs are met as if they are the child’s parent. The guardian must provide food, clothing, shelter, and attend to the child’s educational, spiritual, social and medical needs. The guardian is also responsible for the child’s personal property, such as managing child support, inheritance, government benefits, and/or assets from a trust. It’s critical to choose someone who is trustworthy and willing (and able) to take care of your minor children.Lastly, the local probate court would be responsible for appointing a guardian for any surviving minor children if there was no surviving parent and no guardian nominated through a properly executed Last Will and Testament.What special considerations should be included in the Estate Plan?Depending on your personal and financial situation, there are special estate planning options that can help you plan for your minor children. These can include:Last Will and Testament- A legal document where you name guardians for your children and leave instructions for your assets. You will want to make sure that your guardian wishes are clearly defined in your Last Will and Testament. The common choice is usually a family member, but depending on your personal situation, you may want a close friend to serve as guardian. If you fail to clearly list your guardian choices, and there is a disagreement about who should be guardian, the court will have to choose.Trust- An adult is appointed as trustee to manage the child’s property in accordance with the provisions specified in the parent’s trust document. Setting up a trust is typically the best option when leaving assets for the benefit of minor children for the following reasons:A trust provides maximum flexibility and privacy.A trust can be drafted to retain assets in trust until any age or for the beneficiary’s lifetime.A trust can be established for multiple beneficiaries (Example: if you have multiple minor children).A trust for a minor child is managed by a trustee (either an adult or a trust company), who doesn’t have to file any reports with the probate court.Beneficiary Designations- If there are minor children, it’s usually best to avoid naming them as beneficiaries on assets with beneficiary designations (EX: life insurance, IRA, etc.), since it will require a conservator to monitor the asset(s) until the minor reaches eighteen years old. If the parents have a living trust, it’s advisable to name the trust as the beneficiary so that any assets with beneficiary designations can be paid to a successor trustee, not directly to the children. If the parents don’t have a living trust, another option is naming the probate estate as beneficiary so that the beneficiary designated proceeds can pour into what is called a testamentary trust, described in the parents’ will.How do I name a guardian in my will?In Arizona, parents should nominate a responsible adult as guardian for their minor children through a properly executed will. By nominating a guardian, you’re telling the court who you want to manage the care and protection of your minor children if something should happen to you.Contact UsAt Brown & Hobkirk, PLLC we are sensitive to the difficult and emotional nature of planning an estate that involves minor children. Even if you’re in good health, having an estate plan that protects your minor children will provide you the peace of mind that your family deserves.We will provide the guidance you need to make the best choices for your family. Contact us today to schedule your consultation at one of our conveniently located offices.Robert HobkirkRobert Hobkirk is a partner at the law office of Brown & Hobkirk, PLLC. He represents clients in legal matters involving trusts and estates, wills, probate law, and estate litigation, among other areas.Read Morewww.brownhobkirk.com/about-us/robert-hobkirk/

Archives for February 2022

Estate Planning for People with Minor Children