If you have a minor child, you need to appoint a guardian for them when estate planning. This appointment gives the guardian the power to take care of your child when you are unable to do so due to incapacitation or death.
There are two types of guardians you can name for your child, which are:
Guardian of the person and guardian of the estate
The two types of guardianships are guardianship of the person and guardianship of the estate. The first type gives a guardian the responsibility for the child’s care and the right to make legal decisions on behalf of the child, including medical care and education. The latter type gives the authority to manage a minor child’s finances, which is essential when a child has a lot of money, income or property.
You can choose one party to serve both roles, or you can name two types of guardians for your child. For instance, a financially savvy loved one, such as an accountant, can be the most suitable guardian of the estate. This is because their knowledge of managing finances and keeping detailed records of financial transactions can benefit your child.
However, if they have demanding working hours, they may not be the best party to live with your child or handle daily responsibilities. You can choose another loved one whose career allows them to spend more time with the child as the guardian of the person.
Additionally, consider naming backup options for each type, as the primary ones may be unable to assume their duties when the time comes.
Naming a guardian for your minor child can be sensitive since it makes you face the possibility that you may not raise them to adulthood. Being adequately informed can make your experience more manageable.