If you’re undertaking
creating an estate
plan (ideally with
the assistance of a
legal professional), you should plan for
the worst-case scenario, i.e., plan for the
situation in which you and your spouse
both pass away or become unable to care
for your child(ren).
Although the chances of both of a
child’s parents dying or becoming
incapacitated may be slim, consider the
situation of Dana and Christopher Reeve – or the case of a couple being killed in a
plane or automobile crash. These
tragedies can and do occur.
If you have minor children, one of your
most important decisions is whom to
name as guardian of your child. In most
states, a guardian can only be designated
through a will.
The other essential decision relates to
how your assets will be passed to your
child should you die. If you don’t have
an estate plan, your assets will be
administered by a court-appointed
guardian until your child reaches a
specified age (usually 18). At 18, maybe
your child will not be capable of making
wise financial decisions. A well-crafted
estate plan can be of tremendous value
in this situation as a trustee can manage
finances based on your wishes.
Source: Houston Chronicle, 3-27-06
