When most people think about estate planning, they typically associate it with wealth management or end-of-life preparations. Often overlooked is one of the most critical aspects of estate planning, which is how it can protect your children.
For parents in Madison and Dane County, WI, estate planning provides peace of mind by ensuring your children are cared for, both emotionally and financially, should the unexpected happen. At Borakove Osman LLC, we know it’s not only smart to plan ahead, it’s a kindness for all of your surviving loved ones to have these estate matters squared away ahead of time.
Naming a Guardian: Your Child’s Emotional Safety Net
It’s not surprising that one of the most crucial parts of any estate plan for parents is appointing a legal guardian. If something were to happen to you and your child’s other parent, the courts would step in to determine who should raise your children. Without your input, this decision may not reflect your wishes or your child’s best interests.
By naming a guardian in your will or estate plan, you ensure that someone you trust—who shares your values and parenting philosophy—will care for your children. In Wisconsin, this process must be formalized through legal documentation. Simply telling a friend or family member isn’t enough; it needs to be clearly stated in your will.
When choosing a guardian, it’s important to consider several factors. Such as:
- Are they stable both financially and emotionally?
- Are they willing and up to taking on the responsibility?
- Do they share your moral and religious beliefs?
- Are your children emotionally connected with them?
- Do they live nearby or would relocation be required?
Financial Protection: Securing Your Children’s Future
Another important benefit of an estate plan is that it can make sure your children have the financial support they need down the road. If minors inherit assets outright, they cannot legally manage them. That’s where planning tools like trusts come into play. By establishing a trust, you can allocate funds for your children’s education, healthcare, and other essential needs, all while choosing a trusted person to manage those resources responsibly.
One common option is a revocable living trust, which allows you to retain control over your assets during your lifetime and ensures they are distributed according to your wishes after your death—often without going through probate. Another tool is a testamentary trust. This type of trust is set up through your will and only becomes active after your death. It provides similar protections and control over how your children’s inheritance is managed.
There are other options as well. Some families may choose to use custodial accounts under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA). These types of accounts allow assets to be transferred to a child without setting up a trust. It should be noted that once the child reaches the age of 18 or 21, control of the funds will shift to them
The Benefits of Proactive Planning
Beyond planning for worst-case scenarios, estate planning creates a well thought-out system of support that will help the future well-being of your children. With a solid plan in place, you can help avoid disputes or legal battles over guardianship. You also provide clear guidance for how your children should be raised and supported.
Proactive planning is important because it allows you to ensure that any inheritance is managed smartly until your children are old enough to take over. Ultimately, proactive planning relieves stress and uncertainty for your loved ones during a time that may already be emotionally difficult.
Reach out to Experienced Madison & Dane Estate Planning Firm with Questions
At Borakove Osman LLC, we help families put the right legal structures in place to protect what matters to you most. If you have young children and haven’t created a comprehensive estate plan yet, now is the time. Your family will thank you.
