It’s a nightmare scenario – the thought of leaving your young children behind with no one to care for them. You’ve probably pushed it aside, telling yourself it won’t happen to you. But what if it does? What happens to your children if both you and your spouse pass away before they turn 18?
It’s not something anyone likes to think about, but making a plan for this unthinkable situation is one of the most loving and responsible things you can do for your children. Knowing how things work and what steps you can take will give you peace of mind that your children will be cared for, no matter what happens.
Who Will Take Care of Your Children?
If you and your spouse both pass away, someone will need to step in and take care of your children. This person, known as a guardian, will make decisions about their education, healthcare, and overall well-being.
You might assume that your family will just know who should step in, but the reality is that a court will make this decision. If you’ve already named a guardian in your will, the court will likely follow your wishes. But if you haven’t, the decision will be left entirely in the hands of the court. This can lead to disagreements and even painful custody battles between family members who may all have different ideas about what’s best for your children.
Naming a Guardian in Your Will
The easiest way to make sure your children are cared for by someone you trust is to name a guardian in your will. By doing this, you’re giving the court clear guidance on who should take over parenting your children if something happens to you.
When choosing a guardian, it’s important to think carefully about the person’s values, lifestyle, and ability to raise children. You want to pick someone who shares your beliefs about things like education, discipline, and religion, and who can provide a stable, loving home.
It’s also important to talk to the person before naming them in your will. Make sure they’re willing and able to take on such a huge responsibility. It can be a difficult conversation, but it’s essential to ensure your chosen guardian is prepared to step up if needed.
What If You Don’t Name a Guardian?
If you don’t name a guardian in your will, the court will appoint one for you. Typically, they will choose a family member, but it might not be the person you would have chosen. For example, you may prefer that your children live with your sister who lives close by, but the court might select your elderly parents who live across the country.
In the worst-case scenario, if the court can’t find a suitable family member or close friend to take on the role, your children could end up in the foster care system. While this is rare, it’s a risk you should consider.
By naming a guardian in your will, you can avoid this uncertainty and have confidence that your children will be placed in the care of someone you trust.
Can You Name More Than One Guardian?
Yes, it’s a good idea to name both a primary guardian and a backup guardian. Life is unpredictable, and your first choice for guardian may not be available when the time comes. They could fall ill, pass away, or simply be unable to take on the responsibility.
By naming a backup guardian, you’re covering your bases and ensuring that your children will still have a safe and loving home, even if your first choice isn’t able to step in.
Financial Security for Your Children
Having a plan for your children’s care is crucial, but there’s another piece of the puzzle – financial security. How will your children be provided for after you’re gone?
One way to ensure your children’s financial needs are met is by setting up a life insurance policy. This policy will provide a lump sum of money that can be used to cover your children’s living expenses, education, healthcare, and other needs after you’re gone.
In addition to life insurance, you may also want to consider setting up a testamentary trust. A testamentary trust is created through your will and allows you to leave money for your children in a way that’s managed by a trustee. This trustee could be the same person as your child’s guardian, or it could be someone else entirely. The trustee will manage the money and ensure it’s used for your children’s benefit until they’re old enough to handle it themselves.
By setting up a trust, you can protect your children’s inheritance and make sure it’s used in the way you intended – whether that’s for their education, healthcare, or future needs.
What If the Guardian and Trustee Aren’t the Same Person?
If you feel that the person you’ve chosen as your child’s guardian isn’t the best with finances, you can appoint a separate trustee to manage the funds. This creates a system of checks and balances, ensuring that your children’s inheritance is well-managed and used wisely.
Having separate roles can also prevent any strain on the guardian. While the guardian focuses on raising your children and taking care of their day-to-day needs, the trustee can handle the financial side of things.
What Happens If the Parents Have Different Guardians Named?
If both you and your spouse have named different guardians in your wills, things can get complicated. The court will likely defer to the will of the last surviving parent. That means if you pass away first, your spouse’s choice of guardian will likely be the one the court follows.
It’s important to discuss this with your spouse ahead of time and make sure you’re both on the same page. Choosing the right guardian is a big decision, and it’s best to make it together.
What If Your Children Inherit Before They’re Ready?
Even if your children reach the age of majority (usually 18 years old), they might not be ready to handle a large inheritance. This is where a testamentary trust can be helpful. You can set the trust up to continue managing your children’s money until they reach a certain age – 25, for example – when they may be more mature and financially responsible.
The trustee can continue to manage the funds, paying for your children’s needs as they grow, including college tuition, healthcare, and other major expenses.
Why You Shouldn’t Wait to Make a Plan
It’s easy to put off making a will or thinking about guardianship, but the truth is, none of us know what tomorrow holds. The best way to protect your children and ensure they are cared for if something happens to you is to take action now.
Making a will and naming a guardian gives you peace of mind that your children will be safe, cared for, and provided for. It’s one of the most loving things you can do as a parent.
So, while it may be a difficult topic to face, don’t wait until it’s too late. Start planning now, and rest easy knowing that your children will have a future that’s secure, even if you’re not there to see it.