Parents with young children have quite a few difficult decisions to make when it comes to estate planning. Not only do you need to figure out who should take care of your children in the unlikely event you pass away before they’re old enough to care for themselves, you also have to put a plan in place to provide for your kids’ financial well-being in the event you can’t be there.
For some parents, the solution is simple: there’s a trusted friend or family member whom they can rely on completely, both for bringing up their children in a healthy, loving home and for responsibly managing the inheritances left for the children.
For other parents, though, the circumstances are a little more complex. Perhaps there’s a family member who is fantastic with the children, and would make a great guardian, but that person is not too reliable when it comes to money management.
The good news is that you don’t have to name the same person to take care of your kids’ personal needs and to manage their finances. You can name one person as guardian, and a completely different person – one who will make the best financial decisions for your kids – to serve as trustee or custodian for inheritance purposes.
To make sure your children get the best of both worlds, you’ll want to choose a guardian and a trustee who can work well together in the interests of your children.