Statistically speaking, it's highly unlikely that something would happen to the parents of a young child. But when the unthinkable does happen, the consequences are nothing short of devastating.
Have you considered what would happen to your children if you didn't make it home one day?
The hard truth is that your children could be in a world of hurt if you died without the right estate plan in place.
The police would go to your house after they find you unable to communicate. If they discover that you have young children waiting for you and don't believe your kids are in good hands, they would call Child Protective Services. That could lead to your kids spending time with strangers in protective custody.
Naming permanent guardians in a will is not enough to avoid an unfortunate result like this. After all, how are the authorities supposed to know what's in your will when they show up on your doorstep? Moreover, how is your choice for long-term guardian even going to know that something has happened to you? What if they can't be reached?
Of course, the situation would be much worse if you hadn't gotten around to naming that permanent guardian. A judge, most likely a stranger who doesn't know your family, would select the person or persons that look best on paper to raise your children. The court might choose someone you wouldn't choose, and the process could take well over a month. Things would get really bad if your family and friends openly disagree about who should parent your children.
While the legal system is working out who should have custody, it would also focus on your assets. If you have only a will (or no plan at all), your assets would probably go through probate before they get to your loved ones. Probate typically takes more than 12 months in California.
It can also be EXPENSIVE. In fact, what it costs to plan is usually a fraction of the cost of not planning (in terms of probate expenses and unnecessary estate taxes). Plus, when your assets are tied up in the probate process, your children's guardians may not have easy access to those resources.
Then, once your assets are done with probate, it's quite possible they'll be held in a special guardianship estate. Why? Because, unless the planning is done correctly, your children cannot legally inherit from you while they are still minors. A minor can't even be a beneficiary of your life insurance policies -- a very common planning mistake. (You can read more about planning with life insurance at Brian's Blog.)
A court-supervised guardianship estate would generate additional lawyer and accounting costs. Then, once your children turn 18, they would get everything you left them (including that $1,000,000 insurance policy) outright -- no strings attached!!
You won't be surprised to hear us say that it's always a good time to plan your estate. But that's especially true if you have children under 10. We would be happy to guide you through the tough decisions, make the process easy for you, and help you protect your children in ways other planners haven't even begun to think about.
Please contact us today to schedule a no-obligation consultation with Brian Wyatt. We would love to care for you and your family!
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