Monday, January 18, 2010 Should the Fox Guard the Henhouse?So now you have decided who to nominate as a guardian for your minor children should something happen to you. Now, let’s explore who should be the custodian (or person in charge) of the money you left them. Because your children are minors, you realize that you can’t leave money or property to them outright. If you do, that is a sure way to ask for court involvement.
Let’s call this custodian a trustee. The trustee’s job is to invest and manage the money for your children, and make distributions according to the terms of the trust or the will. Commonly distributions can be made for the child’s health, education, maintenance and support. Deciding who should be the trustee can be a difficult job. Many people automatically assume that the trustee should be the same person who is going to be the guardian of the children. While this may seem simpler, this is something that should only be done with careful consideration. You want a trustee that can be objective and realize that the money needs to last through college, or last to carry out your goals. You do not want someone who will give in to the child’s demands for that fancy new car, a pony, or whatever they may want. You also don't want to end up with someone who might not use the money just for the children, the old fox guarding the henhouse example. Since the trustee will have some discretion in deciding if certain expenses are necessary and fall under the category of support, for example, you want someone who can use that discretion wisely. Look outside the family if necessary. There are many people that do this for a living, and can take an objective view. Make sure you think this decision through with your attorney to ensure that you make the best decision for your circumstances, and for your children. |