Back again with more thoughts on Estate Planning
after completing your divorce.
This time, we’re thinking about your children and how to provide for
them after your passing.
We have already raised the issue of your passing and
that under most cases, if you or your ex were to pass, the other natural parent
should step in for complete control of the children. As we discussed, your Estate Plan could express your wishes
for future guardians, after you and your ex’s untimely death. We can see this in several forms. Most common is a Guardian of the Person
and of the Estate. This is where a
single person, or even several persons, take full control of your children and
your money for the benefit of your children. This is most commonly the case with your brother or sister,
the aunt and uncle, taking on the children and their needs, lock, stock and
barrel.
However, there can be two other common types of
guardians, Guardians of the Person, being the person making life decisions for
your children, and/or, Guardians of the Estate, being the person making money
decisions for your children. Very
common is where you have a sibling, who the children are attached to, who is in
the family way, and better capable of caring for children day to day. You are also lucky enough to have
another sibling that is the investment whiz, the Walls Street guru, who can
better manage the money. This way,
we divide and conquer, having your family care for your children in your
passing. This thought process is
part of the Estate Planning method, to raise these types of questions and
discuss these options.
Assuming you have already designated Guardians of the
Person, following my prior blog, the next step is to address their financial
needs, most commonly through a Revocable Living Trust or other specialized
trust mechanisms. With such a
Trust in place, your successor trustees, who may also be the Guardians of the
Estate, can follow your intent, can provide for specific needs of your children
out of the funds of the Trust, such as private school tuition, extra-curricular
activities, a car, a computer, college application fees, college tuition and
more. As a parent, you can still
care for your children and protect their inheritance by having a proper Trust
in place to carry out your express wishes. You may even want the money paid directly to the provider
rather than the Guardian, especially if your ex is in charge. This is perhaps your final opportunity
to exercise your care and some of your control.
There are various other special trust and
guardianships to consider, but your Estate Planner should be able to raise and
discuss those issues in your consultation and address your needs.
In the days that follow, I will give you more
reasons to create, review and revise your Estate Plan. However, if you are
interested in learning more about an Estate Plan, Wills, Trusts, Advanced
Healthcare Directives, or Divorce, Custody, Visitation, Child Support, Spousal
Support, Property Division, Modifications, Remarriage, or Pre-Nuptial
Agreements, and you live in Santa Clara County or thereabout, please contact me at fbegun@gmail.com, or through my other websites at www.fcbegun.com, or at www.linkedin.com for Fred Begun
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