One of the most important estate planning issues for couples with young children is the of naming a suitable guardian for the children in the event of an unexpected tragedy. Name of a guardian for children is contained in a properly drafted last will and testament.
“Who would raise our children if something happened to us?”
Responsible Parenting Means Planning for the Unexpected
Loving your children means doing everything you can to protect them—even in the face of life’s “what ifs.” Yet, many parents of young children have no estate plan in place and haven’t named a legal guardian. Why not?
For some, it’s simply a lack of awareness. Others assume a close relative would automatically take over. Some struggle to choose the “right” person, or find it difficult to agree with their partner. While the chances of both parents passing away before their children reach adulthood are low, the consequences of not planning can be severe.
Without a designated guardian, the Missouri courts will step in—and a judge, who doesn’t know your children or your wishes, will decide who should raise them. Anyone over 18 can petition to be guardian, which means you could unintentionally leave that decision to chance.
Thinking Beyond Guardianship: How Will Your Assets Be Used?
Choosing a guardian is only part of the equation. Equally important is determining how your financial assets will support your children. Without legal planning, a court will oversee your child’s inheritance until they turn 18—and then hand over everything at once, with no restrictions or guidance.
Other concerns, such as avoiding probate or protecting adult children from poor financial decisions, were less frequently cited—but still valid.
Choosing the Right Guardian
At the Elder and Estate Planning Law Firm, we help parents thoughtfully evaluate potential guardians and select an alternate as well. Factors to consider include:
- Emotional bond and comfort level with your child
- Shared values and religious beliefs
- Age, health, energy, and willingness to raise children
- Financial stability and parenting temperament
- Who can help your child grow into a healthy, happy adult?
Managing the Money: Planning for Your Child’s Inheritance
If both parents die suddenly without a plan, life insurance proceeds and retirement funds are placed under court control. The court will appoint a guardian of the person (the child) and a separate guardian of the property (the money). Every dollar spent must be reported until the child turns 18, at which point all remaining funds are handed directly to the child—regardless of maturity level.
Understandably, most parents are uncomfortable with this scenario.
Why We Recommend Trust-Based Planning
We typically advise parents of young children to use trust-based planning. A trust allows you to:
- Appoint a trustee you trust to manage the assets
- Avoid court involvement in managing or distributing funds
- Control how and when your child receives their inheritance
- Extend financial protections well beyond the age of 18
Trusts can be set up within either a Revocable Living Trust or a Will-based estate plan. The key difference is that a trust gives you greater control and privacy—and keeps the financial aspects of your plan out of probate court.
Key Documents for Parents of Minor Children
To protect your family and secure your children’s future, we recommend the following estate planning documents:
- Last Will and Testament or Revocable Living Trust with a children’s trust
- Durable Power of Attorney
- Healthcare Surrogate Designation
- Living Will
- Legal Guardian Nomination for Minor Children
These legal topics are provided to you by the President of QMC, Mark Easley. While QMC does not engage in the practice of law, Mr. Easley has practiced estate planning and elder law for over 30 years and is currently the principal at the Elder and Estate Planning Law Firm of St. Louis.