Helping parents to choose a guardian who can raise their children in the event of an untimely death is one of the most important jobs a Minnesota estate planning attorney has. Rather than leaving the decision to a judge (who may choose guardians the parents would never want), working with an estate planning attorney and putting the proper legal documentation in place can help you ensure that your children will be looked after in a way you see fit. Parents will want to consider many factors when deciding on a potential guardian, such as:

Financial Availability

Raising children can be expensive. Costs of food, clothes, and personal items can cause strain on a family who is not financially equipped to support children. Ideally, your estate plan will include resources that will be set aside for the care of your children, such as proceeds from a life insurance policy or the sale of the family home. But if this is not a reality in your situation, the financial security of your potential guardian is something to keep in mind.

Family Values

Do you have religious or spiritual values that you wish to be passed on to your children? What are your beliefs on discipline? Do you place a strong value on education? The answers to these questions can impact how your children are raised and the values that are instilled in them. If you have strong desires about how your children are to be raised, it’s best to choose a guardian whose values and belief systems closely mirror your own. 

Bond with the Child

Do your children know the person you may choose as guardian? Do they like this person? Children who have lost a parent can be fragile and vulnerable. They will need the comfort of someone they already love, trust, and respect.

Willingness and Ability

Does your potential guardian want to care for your children? In the aftermath of your death, will this person be emotionally capable of being strong for your children? Don’t assume you know the answer to this question; instead, ask your potential guardian if they would be willing to accept the job if called upon.

In addition to helping you with all the legal documentation to appoint a guardian for your children, an estate planning attorney can also help you create trusts to help your children financially in the future. Trusts can be set up to dispense in all sorts of ways, from monthly stipends for basic care to educational allowances that payout for college. When you are ready to get a plan in place for your children, please give us a call at 763-244-2949 and let us help you secure your children’s future. 

The Special Needs Trust also helps to ensure there are enough financial resources available to meet the individual’s long-term care needs, without jeopardizing eligibility for state or governmental aid. This aspect is key, as benefits such as Social Security or Medicaid are very limited and cannot possibly cover all expenses a person with special needs may need to live out his or her life in a secure and comfortable way.

Unfortunately, many parents think that the answer to this problem is to leave their child with disabilities a large inheritance when they die…but this is a mistake. While an inheritance may give the child a “cushion” for the future, it could cause him or her to become ineligible for benefits that the child relies on for healthcare and other day-to-day needs.

Again, the good news is that a Special Needs Trust can help preserve eligibility for benefits while also making sure there is enough money available for the child’s future care. But, the Special Needs Trust must be set up correctly to ensure the trust works as planned. To that end, it’s important for parents of special needs children and adults to avoid the following mistakes when setting up this legal document:

1. Procrastination: When you have a child with special needs, it’s a huge mistake to put off planning. You just never know when you might become incapacitated or die. But, it is even more critical for parents of special needs kids to plan early. That is because a child with special needs may not be able to work and provide for their own financial well-being when they become adults. Having a Special Needs Trust set up while the child is still young will allow others to make contributions and gifts through the years in a way that doesn’t penalize the child financially.
2. Trying to cut corners with “DIY” or online options. Special Needs Trusts should be created by a lawyer who focuses in this area of the law because special needs trusts are subject to both federal and state laws, and the laws of each state can vary. Likewise, the ins and outs of benefit programs are complex, and you’ll want to work with an attorney who is well-versed in the options available to your family.
3. Failing to educate trustees on expectations and duties: Being selected to serve as a trustee of a child’s Special Needs Trust is a big responsibility. Before choosing a trustee, we recommend talking to that person about what may be expected of him or her when the parent is no longer able to manage the child’s trust funds. It may even be helpful to bring your desired trustee in to meet with your special needs planning attorney who can run that person through some of the specific responsibilities he or she will take on, such as paying the child’s bills.
4. “Drafting it and forgetting it.” A Special Needs Trust is a living document that is flexibly designed to meet the changing care needs of a person with disabilities. To that end, a Special Needs Trust should be updated every few years to ensure that the document is up-to-date and reflects a current snapshot of the individual’s life.

A Special Needs Trust is a complex document that is designed to support and protect a person with special needs through all of the transitions that he or she may face. Working with an experienced attorney can help avoid making one of the common mistakes mentioned above, while also providing families with a roadmap for a secure future.

If you have questions about Special Needs Trusts or you need assistance getting started, please click here to schedule a free initial phone consultation with our Monticello estate planning law firm.

Putting this plan in place takes some time, but it provides you with a great sense of peace knowing that the babysitter you chose will have all that he or she needs to make sure your children are okay during your absence.

Now I’m going to ask you a question. Answer honestly. How much time have you spent planning for your children’s future in the event that you can no longer care for them?

If you are like most parents of young children, I already know the answer. It’s a sad fact that most parents of young children do not have an estate plan in place.  If you think about it, you probably spend more time preparing to go out for a dinner and a movie than you do planning for the potential that you won’t be there to raise them.

I get it. The odds are in your favor. Chances are great that you will live a long, healthy life. But, accidents happen. Even young and healthy people can face the unexpected. You could be temporarily or permanently incapacitated – or worse. If something does happen to one or both parents, it can devastate a child’s world. Even though you can’t plan away the emotional trauma they will suffer, you can put a solid foundation under them that will ensure that they are cared for by the person you choose.

In a way, the process is similar to planning for a date night, but the first step is to select a guardian rather than a babysitter. This person will raise your child, so you should carefully consider who should fill this role. It’s often best to brainstorm with a Minnesota will and trust attorney, as he or she can help you consider each person from all angles.

 The next step is to make a plan that legally documents your wishes and preferences, including your preferences for your children’s upbringing, what type of education you envision, experiences you wish for them to have, at what age should they inherit money that you leave for them, etc. Again, an experienced Minnesota will and trust attorney can help guide you through this process.

Just like having a detailed plan for date night, once your estate plan is in place, you’ll be able to relax and enjoy the peace of mind that your children will have a secure future even if you aren’t there. Call our office at 763-244-2949 today and schedule a Personal Strategy Session to get started.

While estate planning for single parents is similar to estate planning for two-parent families, there are certain factors that require an added amount of attention when only one parent is involved. If you are a single parent, here are some important things you should consider about your estate plan.

Make Sure Your Documents are Updated

If you have not reviewed your will or your other estate planning documents in the last few years, you should do so as soon as possible so that your estate plan reflects your current situation. Ensure that you are satisfied with the beneficiary designations on your insurance policies and any other accounts so that it’s not up to the probate court to decide what your children should receive if you were to pass.

Designate a Suitable Guardian

If there is not another parent in the picture who is available to take custody of your kids in the event that you become incapacitated or lose your life, make sure that your estate plan designates a guardian for your children. This should be somebody who is both willing and able to care for them. If your guardian requires financial assistance to raise your children, be sure to set aside funds from your estate for that purpose.

Acquire Adequate Insurance

Because your family depends solely on your income, you should ensure that you have mechanisms in place to preserve your children’s financial security. Life insurance can augment your estate if you pass.

Clarify Your Healthcare Wishes

Without the input of a spouse, it is especially important that your estate plan outlines your preferences about life-sustaining medical procedures if you are unable to make decisions for yourself at any point. It is also recommended that you designate medical and financial powers of attorney so that trusted individuals can make decisions on your behalf in such circumstances.

Consider Establishing a Trust for Your Children

Regardless of their age, a trust can be a particularly effective way of providing for your children. The assets in a trust are managed by individual or corporate trustees, and the funds are distributed to your kids at a certain time or under certain circumstances that you specify in advance.

Trusts can be particularly helpful if you have minor children, as your assets may otherwise come under the control of the child’s other parent or a court-appointed administrator.

Speak to an Experienced Minnesota Trust Attorney

If you are a single parent or have recently become one, it is important that you review and revise your estate plan as soon as possible. Working with an experienced estate planning attorney will allow you to do this in a manner that serves your best interests and those of your children so that their future can be secure.

Our Minnesota estate planning law firm is here to help you with every aspect of this process. If you have questions or you’d like to schedule a consultation, simply call our office at 763-244-2949 to schedule a free initial phone consultation.

While you may have a few thoughts in your mind about who would be best suited for the role (grandparents, aunts, uncles), if you don’t legally document your choices, a judge will dictate where your kids are raised if something happens to you. This is true even if you have family members who are willing and able to help; a judge will ultimately decide what he or she thinks is best for your family.

If you want to be the one to decide how and with whom your kids are raised, you’ll need to hand-select a guardian and then legally document your choice. The following questions can help you narrow your options if you are unsure of who to appoint to this role:

• Does your choice have the necessary maturity, experience, temperament, patience, and stamina to raise your children?
• Does your choice have a genuine interest in your children’s welfare, either through family relationship or personal friendship?
• Is your choice physically able to undertake the care of an additional child or children?  If they have other kids already, can their home comfortably accommodate adding yours?
• Is your choice willing to be a legal guardian?
• Does the age of your choice pose any problem?
• Does your choice have a financial lifestyle comparable to your own?
• Does your choice live in the same geographical area as you? Would your children have to move to a new city or state?
• How similar are your choices’ values or views on life to your own?

While the thought of someone else raising your children may be the last thing you want to think about, choosing a legal guardian and legally documenting your choice is necessary for their security and care if something happens. By deliberately putting off this matter, you ultimately leave the fate of your kids in the hands of a stranger.

Again, you know what’s best for your kids and naming guardians allows you to have a say in your children’s future. If you need help getting started with the process, we invite you to call our Minnesota law office at 763-244-2949 to set up a consultation.

When working with an estate planning attorney to determine if you should create a trust for your children, you will need to determine the answers to several imperative questions.  The first one most people ask is “how much?”  How much money will you be leaving for your children?  If you are leaving a considerable amount (say more than $100,000), or if you have very specific intentions for the money, then your Minnesota estate planning attorney may advise you to put the money into a trust.

The trust itself can give you the opportunity to really outline how you want the money to be used.  This can be helpful in ensuring that your children have the opportunities that you intend to provide.  Money may be set aside for the purpose of a college education, with stipulations that it is not to be used for other purposes (like a new car or a wedding, for example).  For minor children, this type of control may seem even more important, as the money in the trust can be designated for basic necessities such as food, medical care, and clothing.  This discourages a guardian from mishandling the funds.

Another question to ask regarding a trust has to do with when you want the funds to be dispersed.  Some people choose to defer the funds for a set number of years or until their child(ren) reach(es) a specific age.  This can be advantageous because very young people may not yet possess the maturity and life experience to handle a large sum of money well.  Access to a trust at a young age can also impeded the child’s drive to pursue his or her own pursuits.  An estate planning attorney can offer guidance in how other parents have chosen to deal with these concerns.

There are a lot of considerations to be made during the estate planning process.  A good attorney will help to identify which issues are the most pertinent for your particular situation and will then offer suggestions and solutions to any obstacles or concerns you may be facing.  Estate planning professionals understand the importance of using wills, trusts, and other tools in order to provide financial security for the next generation.