Protecting Your Kids Beyond Naming A Guardian

As a parent, you likely understand the importance of naming a guardian for your children. If you and their other parent both pass away or become incapacitated, another person will have to step in and raise your children. If you do not name a guardian for your children, the court will have to intervene and make the decision. The court’s decision may not align with your wishes.

Unfortunately, many parents make the mistake of thinking that naming a guardian is enough. They believe that because they have drafted a will and named a guardian, everything is taken care of. Sadly, this is not the case. Our St. Petersburg trust planning lawyer explains in greater detail below.

Guardians Do Not Always Control Your Child’s Money 

Many people think that if they pass away or become incapacitated, the guardian they have named for their child will automatically control any money you have left for them. This is not true in most cases. Instead, the court often requires a separate guardianship of the money or property you have left for your child. This means a judge will determine how their finances are managed, yearly accountings must be filed, and funds may be delayed or restricted.

All of this can result in legal costs diminishing the inheritance you meant to leave for your child. Additionally, the individual the court chooses to manage your child’s finances may not be the same person you named as their guardian.

Using a Trust to Protect Your Child’s Inheritance 

Trusts are legal documents that allow you to transfer property into the name of the trust. During your lifetime you can still manage the trust and the property within it. You can also name a successor trustee who will take over control of the trust and manage the property according to your wishes if you pass away or become incapacitated. By placing the property you want to leave your children in a trust, you can ensure it will be protected.

The successor trustee you name will also manage the property if you are unable to and ensure your children receive distributions of their inheritance according to your wishes. Trusts are legal separate entities from grantors, or those who create them, and so they can protect your property from creditors, divorce, and other factors that could ultimately deplete the property. As a separate legal entity, they are also not subject to probate so court involvement is not required for distributions.

After naming a guardian for your children, you can also name the same person as the successor trustee. This will ensure that they have the money necessary to raise your children, while also making sure your children receive their inheritance when you want them to. Without a trust, your child will have access to all of the funds when they turn 18 years old, and this may not align with your wishes. Even the most responsible teenagers are rarely prepared to manage large sums of money.

Our Trust Planning Lawyer in St. Petersburg Can Help Protect Your Family 

Naming a guardian for your minor children is important, but there are other ways to protect them, as well. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning attorney can advise on what those are and ensure your plan is executed properly so your family is protected. Call us today at 727-471-5868 or contact us online to schedule a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html