If you have recently been on Twitter or Facebook—for any appreciable amount of time—you have been exposed to an onslaught of blog articles, personal posts, and re-shared articles all trying to help you get your life together in 2015. Self-proclaimed “experts” are busy giving everyone tips and hints on how to lose weight, what the keys to a happy marriage are, or how to become better organized. Regardless, all of these gurus agree on one thing—we should all start the new year with a resolution.

Of all your resolution options, here’s an easy one to start and finish in a short amount of time: resolve to get an estate plan for your family. The No. 1 reason families do not take the time to make this a priority is because they are waiting for the right time. They are waiting for their net worth to grow. Waiting until they are old enough. Waiting until they can afford it. Waiting until they are done having kids. Waiting until they aren’t so busy. Waiting, waiting, waiting, waiting.

The truth is, the people that can least afford a will (they think), are actually the same people that need it the most—parents of young children. We all know what a will does. It directs where your assets should go when you die. It appoints a personal representative to manage your estate. It helps handle all of the money things. Often times 20-something parents are of the attitude that they don’t need to will their mortgage and car payments to anyone. These things will just take care of themselves.

These same people are also frequently raising minor children. Often infants and toddlers. If you are a parent with young children, ask yourself this question: What happens if you and your spouse suddenly die tragically in a car accident together on icy Nebraska January roads? If you do not have a will, here’s what you are looking at: Your brother, Uncle Fred, says he’s suppose to get the kids, because that’s what you told him one night when you were drinking beer. Aunt Sally, your wife’s sister that you are not fond of, says that she is supposed to get them, because “that’s best and what everyone wanted.” Meanwhile both sets of grandparents have grown fond of the children and they then throw their name in the hat. In the end, a petition will get filed with the Court, whereby a Judge, who you have never met, will get to pick where your children end up going to grade school and high school. The Judge will pick your child’s care giver. All because you were too busy.

There is an easy solution. A basic, no hassle will which sets forth who it is you want to have serve as the guardian over your children, in case you die. Upon your death, the document is filed with the Court, and the Judge is then directed by it to appoint the guardian that is set forth therein, as the custodian of your children. Case closed.

What is more, is that inside the same basic will, you can also set forth what is called a “testamentary trust”. This is trust language contained inside the body of the will itself, which names a trustee to manage the assets for your minor children, until they reach an age that you specify in the trust. While a young mom and dad may not have substantial assets, while they are alive, to pile into a trust, the result might change if they have life insurance. And in fact, such an insurance product is highly recommended for parents of minor children. In a perfect scenario, upon the death of parents of small children, they will have a life insurance policy which names the “testamentary trust trustee set forth in my last will and testament” as the contingent beneficiary. That creates the ideal interplay between a life insurance policy and the will. Otherwise, without a will and without the trust language, not only will the children’s custody be fought over, but who manages their money from the life insurance proceeds will also be unclear. Moreover, unless the life insurance proceeds are managed in a trust (which generally terminates at a later age like 30 or 35), the money will be managed by a court appointed (Judge selected) conservator. Not only will the conservator probably not be your first choice of money manager, but his or her job will terminate automatically when the minor child reaches the age of 19. Speaking from experience, a 19-year old is not likely ready to manage more than this week’s lunch and gas money.

In the end, to prevent a scenario where your evil sister-in-law is raising your kids and your irresponsible younger brother is managing your child’s money until they reach 19, get a will. If you have time to hop on the treadmill, change your eating habits, and start going to bed earlier, then you have time to call your family attorney and get a will. It is the best New Year’s Resolution you can keep.

By Andrew J. Hoffman,
Attorney at Law