NAMING A GUARDIAN FOR YOUR CHILDREN

It is currently estimated that fewer than 50% of people in the United States has an Estate Plan.  That includes anything from a simple will to a complex plan with multiple trusts.  Although the complexity of someone's estate plan varies depending upon many factors, the most important reason to have an estate plan is universal: "Taking care of my family in case something happens to me."

One of the most common catalysts to individuals thinking about creating an estate plan is parenthood.  Once a child comes into the picture, he or she becomes the centerpiece in a parent's life.  Therefore most parents want to make sure their child is protected and cared for if something unfortunately happens to them.

Naming a guardian can be the most difficult decision for a parent to make when creating an estate plan.  First, no one likes to think about their own death and secondly, it is hard to imagine someone other than you and your spouse/partner raising your child.  Married couples tend to have difficulty in choosing whose side of the family should be named guardian.  Then deciding who you trust to raise your child(ren), and finally determining if they would even want to raise your children.

One helpful exercise when discussing guardians is to go through these three steps:

Step 1: Create a short list of individuals or couples who you (and your spouse/partner) would be willing to have raise your children if you were not able to do so.

Step 2: Consider how important each of the following items are to you:

• Parenting philosophy
• Existing relationship with your kids and other family members
• Age
• Location
• Religious beliefs
• Discipline styles
• Personal values
• Keeping children together

Step 3: Rank the characteristics and the individuals that you have listed according to your priorities.

You should also be aware that a living biological parent will usually always be named guardian unless they have waived their parental rights.

Finally, be open with the guardians you choose and discuss naming them as a potential Guardian.  While they will likely consider the nomination as an honor, they may alternatively view the role as too much responsibility.  If someone does decline be understanding, it is best to be aware of this before you name them as guardian.  You can always update your estate plan throughout your life and the guardian you nominate now may change as your child grows.

If you have any questions about preparing an estate plan, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

ESSENTIAL ESTATE PLANNING DOCUMENTS

As a recent poll shows, the majority of Americans do not have a basic Will. While it is more likely that an individual over the age of 60 has a Will, many young families do not even have a simple estate plan in place. The following are common documents that should be included in any estate plan. 

• A Basic Will. A Will makes sure your assets and properties are passed on according to your wishes and allows an individual with children to name Guardians. In Illinois, a Will is a public document that is commonly filed with the Clerk of Court of the decedent's county of residence. If an individual does not have a Will, the laws of the state will control distribution. To help avoid court proceedings known as probate, you may also consider a Declaration of Trust which is a private document and does not need to be filed with the Court.
• A Durable Power of Attorney (POA). This document names a person as "agent" to act on your behalf in case of disability. The document typically covers financial matters (e.g., banking, bill paying, etc.) and can be broadly drafted or be quite limited.
• A Health Care Power of Attorney. The health care POA designates an individual to make important health care decisions on your behalf, when you are unable, due to a temporary or permanent disability. Individuals may also consider creating a Living Will which specifically directs end-of-life instructions.
• Beneficiary Designations. You should make sure appropriate beneficiaries are listed for all of your retirement accounts such as IRAs, 401(k) and life insurance policies. These assets go directly to named beneficiaries. If you do not have named beneficiaries, the assets will generally be distributed through your estate. Check older plans that may still name parents or ex-spouses that you may wish to update. (NOTE: When naming a minor, a guardianship proceeding may be required if the minor inherits.)

An estate plan is much more than simply dividing your assets after death. As you encounter changes in family and finances, these documents can modified. It is important to discuss these matters with your loved ones, and an attorney can help answer questions that you may have as well as advise you on the best plan for your situation. Creating an initial estate plan can be an emotional process, yet the peace of mind in knowing that you have a plan in place can be reassuring.

If you have any questions about preparing an estate planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein. No one should rely upon the information contained herein as constituting legal advice. The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

PREPARING FOR COLLEGE: DON'T LEAVE HOME WITHOUT THESE TWO DOCUMENTS

As summer begins and you celebrate your child's graduation from high school, your attention turns to preparing them for their first year in college. On your to-do list should be two important documents that young adults should have before they go out on their own: Power of Attorney forms for Property and Health Care.

These two estate planning documents are essential for young adults who are likely away from their family for the first time and living on their own. While most people associate power of attorney forms with older individuals, it is important to know that in many states parents do not have the authority to make health care and financial decisions for their children once they turn 18.   That means that if a child over the age of 18 is in an accident or becomes sick or disabled, even temporarily, a parent may need court approval to act on their own child’s behalf.

The Power of Attorney for Health Care authorizes an agent the individual chooses to make health care decisions on potential treatment, to prolong someone’s life, to donate organs, or to simply discuss a medical issue with your child's health care provider. 

The Power of Attorney for Property allows an agent the individual names to pay bills and handle finances if the individual is unable to do so.

Although the forms are not complicated and may be available online, it is advisable to contact an attorney who handles estate planning to confirm the documents are completed correctly.  The cost of preparing these forms should not be more than a few hundred dollars and is well worth the price for peace of mind in an emergency. 

If you have any questions about preparing powers of attorney or any other estate planning questions, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.