Estate Planning for Parents
April 25, 2012 By The Law Offices of James A. Miller
When it comes to making sure young children are taken care of in the context of estate planning, parents have two main areas to address the management of their children’s finances, and the upbringing of the children themselves. It’s a possibility that is tough to think about, but who should be in charge of your children and their inheritances in the unlikely event you and your spouse pass away before your children reach adulthood?
It’s essential that you choose a guardian to provide a home for your children and care for their physical, emotional, educational, and spiritual needs. Many parents also use a trust to address their children’s financial needs, appointing a trustee to manage the children’s inheritances.
But, is it a good idea to name the same person to serve as both guardian and trustee? As with most other estate planning question, there’s no one-size-fits all answer. The best decision for you might not be the best decision for your next door neighbor’s family.
One advantage to naming the same person to serve in both capacities is that the administration of the trust should be smooth and efficient, since the same person will be making the decisions concerning your children’s finances and their upbringing. If you trust the financial management skills of your guardian, naming that person to serve as trustee as well may work perfectly.
On the other hand, naming separate people to serve as guardian and trustee can add an extra layer of protection when it comes to making sure that your children’s money is managed responsibly and effectively. With a guardian to monitor the trustee’s decisions, a trustee is less likely to mismanage funds. And, even if you’re not worried about fraud or intentional mismanagement, there are situations in which the perfect guardian for your children may not have the best track record when it comes to money management. In this case, naming a separate trustee might be the way to go.
No matter which route you decide on, you’ll want to make sure that you have the utmost trust in whomever you choose to name as guardian and trustee.
ABOUT THE AUTHOR: James Miller
Experienced estate planning attorneys Worcester MA of the Law Offices of James A. Miller estate planning and business planning resources to residents of Worcester MA.
Copyright The Law Offices of James A. Miller
More information about The Law Offices of James A. Miller
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
But, is it a good idea to name the same person to serve as both guardian and trustee? As with most other estate planning question, there’s no one-size-fits all answer. The best decision for you might not be the best decision for your next door neighbor’s family.
One advantage to naming the same person to serve in both capacities is that the administration of the trust should be smooth and efficient, since the same person will be making the decisions concerning your children’s finances and their upbringing. If you trust the financial management skills of your guardian, naming that person to serve as trustee as well may work perfectly.
On the other hand, naming separate people to serve as guardian and trustee can add an extra layer of protection when it comes to making sure that your children’s money is managed responsibly and effectively. With a guardian to monitor the trustee’s decisions, a trustee is less likely to mismanage funds. And, even if you’re not worried about fraud or intentional mismanagement, there are situations in which the perfect guardian for your children may not have the best track record when it comes to money management. In this case, naming a separate trustee might be the way to go.
No matter which route you decide on, you’ll want to make sure that you have the utmost trust in whomever you choose to name as guardian and trustee.
ABOUT THE AUTHOR: James Miller
Experienced estate planning attorneys Worcester MA of the Law Offices of James A. Miller estate planning and business planning resources to residents of Worcester MA.
Copyright The Law Offices of James A. Miller
More information about The Law Offices of James A. Miller
View all articles published by The Law Offices of James A. Miller
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
