Guardianship of Children

In a 2014 Survey of Income and Program Participation by the United States Census Bureau, 0.1 percent of children under the age of 18 had lost both parents to death. That's one out of every 1000 kids. So while the odds are still in your child's favor that at least one parent will be around until he or she reaches the age of 18, the numbers should still make you pause and ask, "What if that happened to us and what do we do to arrange for the guardianship of our children?"

Last Will and Testament

The last will and testament is the legal document that outlines whom the parents wish to take over guardianship of their children should the parents die before the kids reach 18 years of age. The will also creates a plan for how the estate can be used to finance the care of the children. Usually a trustee is named who will distribute the assets as outlined in the will. The trustee can be the guardian or somebody different. To prevent guardians from taking more than intended, parents can state that certain funds or assets only be made available to the kids when they reach a certain age.

It’s important to note that in most cases the courts will award guardianship to whomever is named in the will. It is possible, however, that in some circumstances the courts may rule that the environment of the home you name in your will is not healthy for the kids and will award guardianship to others. For example, if the family you name in the will to care for your children is in the middle of a divorce or a bankruptcy at the time you pass away, a judge may decide that other caretakers for your children be considered.

It’s a good idea to update your will as your children age and as the circumstances of whom you’d like to care for your children change. Grandparents can be a great option to take over guardianship of your kids when you initially set up your will, but the wear and tear of aging and/or illness may not make them a good fit in the future.