Child guardianship: There’s a lot to consider

Ensuring your assets and your loved ones are protected is the basis for estate planning. Fundamental to that planning is choosing the right person to thoughtfully and efficiently manage your estate and fulfill your wishes for your loved ones. I discussed the importance of selecting the right individual in my article How to Choose an Executor for Your Estate. I also pointed out the distinction between choosing someone for this financial role versus anointing someone the honorific title of godparent. This is also true for another important person you must designate in your estate plan if you have minor children — a guardian.

Choosing a guardian is often one of the most difficult decisions those who are building their estate plans have to make; however, it’s essential in the event that you and your spouse should pass away before your children reach the age of legal majority. In my experience, I’ve found that choosing a guardian is the biggest obstacle families have in completing their will, as couples often cannot reach consensus on the best choice. Despite the difficulty, it’s a decision they must make; otherwise, they leave the decision up to the courts.

Factors to consider when choosing a guardian

Asking a relative or friend to be a guardian for your minor children is a tremendous ask. As such, your choice should be carefully considered. To assist with that process, there are a few criteria you should consider, including:

• The lifestyle fit of the prospective guardian. When it comes to selecting a guardian, age and the stage they’re at in life is extremely important. For example, if you have younger children, appointing a guardian who has grown children out of the house would require a major lifestyle change on their part.
• The location of the guardian. Another factor to consider is where the prospective guardian lives. Having a guardian live in proximity to where you live is optimal, since it wouldn’t require your children to have to move to a different school or away from friends. Losing their parents would be traumatic enough. Though location should be a consideration, it’s more important to find the most appropriate and loving home for your children.
• The guardian’s financial situation. Assuming the care of someone else’s children is a tremendous responsibility, let alone managing the financial obligations that come along with it. As such, you want to ensure that caring for your children wouldn’t impose a tremendous financial burden for your guardian. One way to help prepare for that is to create a trust and name a separate person to serve as trustee to cover the direct expenses of your children’s care. You should also consider the financial situation of the guardian and the disparity providing money for your children might create if your guardian has their own children. For example, you should think carefully about having funds set aside for an elite private education for your children when your guardian can only afford public institutions for their children.

  In addition, to provide the guardian with financial support, you can include a direct bequest in your will, create a separate trust, or have a provision in your child’s trust.

• The values of the guardian. While it’s optimal to have an ideal choice, it’s most often not the case. Rarely do I meet families who have the perfect guardian, and as a result, the choice often becomes choosing the most acceptable person. It’s essential, however, that your guardian shares the same values for raising children that you and your spouse share.

The benefits of having a single guardian

Though you may designate a single guardian, many times the guardian of your choice is married or in a relationship; for example, an older sibling. As such, I encourage my clients to name a singular guardian to protect against divorce — you’d never want your child to be involved in a custody dispute. I do, however, recommend naming a successor guardian due to the changing nature of our lives and the uncertainty of the future.

Choosing a guardian and successor guardian for your children is one of the most important decisions you’ll make. Prior to appointing someone, you need to give careful consideration and ensure you have their permission. In appointing your guardian, you’re essentially asking them to be replacement parent, which requires far more responsibility than a godparent.

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