Founding Attorney
For parents, creating an estate plan is one of the most meaningful ways to protect their children’s future. While no one likes to imagine a time when they won’t be there, having clear legal instructions ensures your wishes are followed and your children are cared for by the people you trust most.
In Staten Island, estate planning for parents often involves two major decisions: naming guardians for your children and establishing trusts to manage and distribute their inheritance.
Why Naming a Guardian Matters
If you have minor children, naming a guardian in your will is one of the most important steps you can take. A guardian is the person who will care for your children if you and your child’s other parent are no longer able to do so.
Without a named guardian, the court will make the decision based on what it believes is in the best interest of the child. This can lead to uncertainty and, in some cases, disputes among family members.
When choosing a guardian, consider:
- Values and parenting style – Does the person’s approach to raising children align with yours?
- Location and lifestyle – Would your child need to relocate, change schools, or adjust to a very different lifestyle?
- Financial stability – Is the guardian in a position to provide for your child’s needs?
You can name one person as both the personal guardian and the financial guardian, or assign these roles to different people.
Setting Up Trusts for Your Children
Trusts can help you manage how and when your children receive their inheritance. They also ensure the funds are used for your child’s benefit until they reach an age you determine.
There are two common types of trusts parents in New York may consider:
Revocable Living Trust
A revocable living trust is created while you’re alive and can be changed or revoked at any time. Assets placed in the trust are managed by a trustee you choose. When you pass away, the trustee will continue to manage the funds for your children according to your instructions.
Benefits include:
- Avoiding probate for assets in the trust
- Flexibility to change the trust as your circumstances change
- Continued management of assets if you become incapacitated
Testamentary Trust
A testamentary trust is created through your will and only takes effect after your death. While it doesn’t avoid probate, it allows you to set specific terms for how the funds are distributed to your children.
Benefits include:
- More control over distributions (for example, at certain ages or milestones)
- Protection from your child receiving a large lump sum at age 18
- Clear direction for the trustee on how to use the funds for education, healthcare, or other needs
Working With a Trustee
Choosing the right trustee is just as important as selecting a guardian. This person or institution will be responsible for managing the trust’s assets and following your instructions. Look for someone who is financially responsible, trustworthy, and capable of making sound decisions in your child’s best interest.
Updating Your Plan as Life Changes
Life changes, such as the birth of another child, a move, or changes in relationships, may affect your guardianship and trust decisions. Reviewing your estate plan regularly helps ensure it always reflects your wishes.
Action Steps for Parents
To get started with an estate plan that protects your children’s future:
- Make a list of potential guardians and trustees you trust to carry out your wishes.
- Discuss your choices with these individuals to confirm they are willing to serve.
- Decide on trust terms, including how funds will be used and when your children will receive them.
- Gather important documents, such as deeds, account statements, and insurance policies, to simplify the planning process.
- Schedule a meeting with an estate planning attorney to draft or update your documents.
Frequently Asked Questions
Do I need both a guardian and a trust in my estate plan?
Not necessarily, but many parents choose to name a guardian for personal care and set up a trust for financial management to ensure both aspects of their child’s future are covered.
Can I name more than one guardian?
Yes. You can name co-guardians or a backup guardian in case your first choice cannot serve.
When should I update my guardianship and trust documents?
Review them every few years or after major life changes, such as a marriage, divorce, or the birth of another child.
Protecting Your Children’s Future
Starting the process may feel overwhelming, but naming a guardian and setting up a trust can provide peace of mind for you and security for your children. Even a basic plan is far better than leaving these decisions to the courts.
At Merlino & Gonzalez, we understand how important these decisions are for parents. We will guide you through creating a plan that reflects your wishes and protects your children’s future. Contact us today to schedule a consultation.