There’s no question that estate planning for young families is a must. Not only does proper estate planning determine who will care for your minor children, it avoids a costly guardianship.
What is a guardianship?
When parents leave behind minor children without a will or other proper estate planning, the Court must intervene and create a “guardianship” to determine who cares for the children and who manages any estate left to the children.
Why avoid guardianships?
Guardianships are undesirable for a number of reasons, one of which is cost. The associated costs include filing fees, attorneys’ fees for all interested parties, attorney ad litem fees, and service of process fees. Once the guardianship has been established, there are a variety of maintenance fees, which inevitably include additional attorneys’ fees, additional filing fees, additional ad litem fees, and yearly accounting fees. Legal expenses for guardianships will run into the thousands or tens of thousands of dollars, a healthy portion of which unfortunately comes out of the estate itself.
How do I avoid a guardianship for my children?
To avoid a guardianship and its exorbitant costs, contact an estate planner regarding a testamentary trust provision in your will. Once established, the testamentary trust is a virtually free vehicle to ensure your children are cared for by the people you trust most.
