Estate Planning for Minor Children

Why Parents Need an Estate Plan

For parents of minor children, estate planning is one of the most important things you can do. Without a plan, a court will decide who raises your children and how your assets are managed for their benefit — and the court's decision may not reflect your wishes.

Naming a Guardian

Your will is the only legal document where you can nominate a guardian for your minor children. If both parents die without naming a guardian, a court will appoint one. By naming a guardian in your will, you ensure your children are raised by someone you trust, in accordance with your values.

Trusts for Minor Children

Minors cannot legally own significant assets. Without a trust, any inheritance left to a minor will be controlled by a court-appointed custodian until the child turns 18 — at which point they receive the full amount outright, regardless of maturity. A testamentary trust or a revocable living trust allows you to:

• Designate a trustee you trust to manage assets for your children
• Specify how and when funds can be used (education, health, support)
• Set an age at which children receive their inheritance outright (e.g., 25 or 30)
• Protect assets from creditors and poor financial decisions

Life Insurance and Beneficiary Designations

Life insurance is a critical component of planning for parents with young children. David can help you coordinate your life insurance beneficiary designations with your trust to ensure proceeds are managed appropriately for your children's benefit.

Planning for Special Needs Children

If you have a child with special needs, a special needs trust (also called a supplemental needs trust) can provide for their care without disqualifying them from government benefits such as Medicaid or SSI. This is a highly specialized area of planning that requires careful attention to federal and state rules.