For parents with minor children, the most important reason for estate planning is to ensure that provisions have been made for their children. Some items to consider include:
- Carefully select a guardian. While your first inclination may be to select your parents, make sure they will have the energy to raise your children. A better alternative may be a sibling or friend. If you have several children, decide whether it is reasonable to expect one person to raise them all.
- Talk to your selected guardian. Once you've settled on a guardian, discuss your decision with that person to make sure he/she is willing to take on the responsibility. Name a contingent guardian in case your first choice is unable to serve.
- Make adequate financial arrangements. You wouldn't want your children to be a financial burden, or their presence may be resented. Determine how much is needed for living expenses, hobbies, medical expenses, and college. Include a financial cushion so there is plenty of money until your children reach adulthood.
- Decide who should manage your children's finances. The person with physical custody of your children may not be the best person to handle their finances. Thus, you may want to select another individual for that role. You should also consider whether trusts need to be set up and how money should be distributed.
- Express your wishes to your selected guardian. Make sure to indicate your preferences for education, religion, lifestyle, and other factors.
- Review your choice of guardian every year. As your children grow, you may realize that the person you originally selected as guardian is no longer the right choice.