Guardians are the individuals that you have nominated to care for your children in the event you are no longer able to do so. A living trust can incorporate provisions for guardians that are intended to minimize the potential financial and emotional hardships on the guardian and the guardian’s family.
Here are some common guardian provisions that can be incorporated into your living trust if you have minor children:
1. Assistance for the Guardian’s Household Expenses: If someone takes on the care and upbringing of your minor children, they will also be taking on a huge financial burden. In order to minimize or alleviate this burden, you can authorize payments to your children’s guardians from your living trust for many expenses including but not limited to: cost of utilities, cost of occupying a larger residence, cost of domestic help and/or the cost of child care.
2. Providing Support for the Guardians Children. If your minor children are to merge into the household of another family with minor children, you may not want there to be disparities in resources and opportunities amongst the children. One way to even the playing field is to permit your living trust to pay for your guardians children to participate in the same programs and activities that your own children participate in (such as gymnastics classes, music lessons, camp, etc.)
3. Permit the guardian’s family to reside in a residence held by the trust estate. Many parents would like their children to be able to remain in their own homes should something happen to them. One way to encourage your nominated guardians to move into your home and care for your children should something happen to you, is to permit the guardian to reside in your residence free of charge.
Discretion for such distributions can be given to the then serving successor trustee of your living trust. Your successor trustee should have the authority to make distributions based on the best interests of your children.
If you are interested in learning more about customizing your estate plan to reflect your personal values and concerns, please contact the Law Offices of Lisa S. Golshani at 661-362-0770 to schedule an appointment.