Making sure your children have their needs met — both now and as they get older — is central to the parenting experience. Planning for the milestones you’ll see them through (first steps, birthdays, graduations) is important, of course. Equally essential is the need to think through how they’ll be cared for if you’re unable to do so yourself.

Yes, thinking through how your estate may cover their physical and educational needs is another way of acknowledging their development. It’s also a step toward providing them with a more secure future, in the event you won’t be there.

During our younger years, many of us tend to think of these details only in the wake of a crisis — such as a personal illness or witnessing the aftermath of a tragedy in our community. But the truth is that estate planning and parenthood are topics worth tackling, perhaps as soon as your first child arrives.

After all, knowing that your children will be well cared for — even if something happens to you — can take a common parenting worry off your plate.

When should you work on your estate and guardianship plans?

If you’re a parent — or if you are the guardian of a grandchild or other relative — there’s no time like now to start making or updating your estate plans to address their future needs.

It’s also important to update those plans any time there’s a major life change within your family, such as the arrival of a new child, a move to a new state, or a marriage or divorce. Similarly, a diagnosis of a significant illness or a disability can serve as a trigger for action.

Define what your children would need

Start your plan by thinking through all the things your child or children would need to maintain stability and reach their future goals if you couldn't be there.

For example, you might want to work with an estate planning team (e.g., attorney, trust administrator, wealth advisor, accountant) to puzzle through how you might provide:

• A stable environment with a guardian who has your child’s best interests at heart
• Financial resources for daily living, including housing, medical needs, clothing, pets, clubs and lessons, vacations, social activities and events
• Educational savings for college, trade school or professional training and certification programs
• Any disability-related resources or support your child might require

Understand which legal instruments can help you create your plan

Once you have those concerns outlined, consider the various legal documents you may need to help protect your children’s future.

These may include, but are not limited to:

A will
A will is key to ensuring your children’s future is managed as you’d prefer. Without one, a state court¹ can decide everything from who becomes your children’s guardian to how your assets are distributed.

Your will should spell out who you want to act as guardian of your child or children if you (and your partner) are no longer here. It is also the document to use to allocate resources for your children and specify how those resources are to be used.

» Tip: To avoid delays in accessing resources while your will is going through the probate process, you can create a testamentary trust for any minor children. This can help cover basic needs until the estate is settled.

Formal designation of a guardian (or guardians)
First and foremost, the guardian you choose for your children — and name in your will — should be willing and able to step into the role if needed. Before you ask a friend or relative to take on such a big responsibility, ask yourself if they are truly right for the role.

For example, it’s easy to assume that your parents would be the best choice. But if they are elderly or have serious health issues, it may not be fair or practical to ask them to raise your children.

» Tip: If you have more than one good candidate for a guardian, consider outlining alternates in your will. Then, if your first choice is unavailable for any reason — such as a major illness or cross-country move — your children will still have access to a good guardian with minimal disruption.

A trust
A trust allows you to set aside money for your children’s care, outline what those funds are for and create a plan for responsible spending. Part of creating your trust is appointing a trustee to oversee the funds and follow your directives.

The ideal trustee can work well with your chosen guardian and is sensitive and flexible to accommodate your children’s needs as they grow. You can choose a family member or close friend, or a fiduciary — a trust services professional whose job it is to build and manage a trust. A fiduciary acts in the best interests of the beneficiaries as they carry out their responsibilities.

If one or more of your children will require additional support or ongoing care after they become adults, you also may want to create a special needs trust.² This can ensure that they have the funds to pay for the resources they need when they become adults.

The value of working with estate planning pros to protect your children’s future

Although it's technically possible to create some of these documents (e.g., a will) yourself, a trust may require professional assistance, especially if you have sizable assets and young children to consider.

By working with estate planning professionals, you can explore your options, choose solutions, and make progress toward ensuring that your estate and guardianship plans are created in a way that minimizes the potential for confusion or challenges later.

» Tip: Once your estate plan is in place or adapted to provide for your children if anything happens to you, set a schedule to review your estate plan every couple of years. This is a good way to make sure that your plans stay current and reflect any changes in your children’s needs, your guardians’ status, and your financial situation.

The takeaway

The sooner you start planning for your children's well-being should something happen to you, the more confidence you may have that your wishes are understood and important decisions have been thoughtfully considered. RBFCU Wealth Management offers guidance on estate planning considerations and how your family goals and legacy wishes may fit within your overall financial strategy.