Brevard's Elder Law Firm
1800 Penn Street, Suite 6
Melbourne, FL 32901-2625
Phone (321) 676-2525

What is the difference between Estate Planning
and Estate Planning when you have minor children?

The first is naming a guardian and second is arranging for the management of the children's money. Check out our Estate Planning library book for further information.

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Who will raise our minor children?

The person(s) named to raise your children is called a guardian(s). First, you should advise them of your thought of naming them guardian and obtain their consent. Also discuss how you would like your children raised. You want to make sure the proposed guardian(s) are willing to follow your wishes.

If you were previously married, keep in mind that the Courts will name the other parent guardian. You should still name your choice and state why! It is important to have a Trust in this situation because most people do not want their former spouse having any control of their (Children's) money. By naming someone else as Trustee of the children's money this situation is avoided. See receive the money at 18 below.

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Who will manage our children's money?

The person named as guardian does not have to manage the children's money, it can be someone who is more financially adept. Again, you need to discuss how the money should be spent on the children. Things to think about include: investment philosophy, payments to the guardian (child support) to supplement the Social Security death benefit, schooling, college, post graduate school and what age to distribute the lump sum (25 or 30?).

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Do the children receive the money at age 18?

YES! If you do not set up a Trust, your money will be managed by the children's guardian with Court supervision. The real problem with this scenario is the guardianship ends when the child reachs 18. All the children's money will be given to the child lump sum. An 18 year old will a lot of money is not always the desired result!

If you set up a Trust, the money will be managed for the children until you say so. A good plan might be to use the money for college and distribute the lump sum after the college years.

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Is it important to consult a lawyer?

The lawyer is experienced in these matters and has advised other parents in your situation. Topics such as how much child support should be paid to the guardian, terms of the college education trust and titling of assets so the children do not receive them at 18. This is just a few issues, a lawyer can make your wishes for your children come true.

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