By Andy L. Gitkind | Gitkind Law Firm | Boulder County Estate Planning
For most parents, the moment a child arrives is when estate planning stops being an abstract idea and becomes an urgent priority. Suddenly you’re responsible for someone who is completely dependent on you—and the question of what would happen to them if something happened to you becomes very real.
The good news is that the planning process for parents with young children is straightforward once you understand what decisions need to be made. Here’s a guide to the most important pieces.
The Most Important Decision: Naming a Guardian
If you have minor children and you do nothing else, at minimum you should have a will that names a guardian. A guardian is the person who would raise your children if both parents were unable to do so.
Without a named guardian, a judge makes that decision—without any input from you, and without knowing your values, your family dynamics, or your wishes. Family members may disagree about who should step in. The process can become contested and painful at an already devastating time.
Choosing a guardian is one of the hardest parts of estate planning for parents. Here are some things to think through:
- Who shares your values and parenting philosophy?
- Who has the capacity—emotionally, financially, physically—to take on this responsibility?
- Where do they live, and what would relocation mean for your children’s lives?
- Have you talked to them? A guardian should be willing and prepared, not surprised.
- Who would be your second choice if your first choice is unable to serve?
You can name different people as guardian (responsible for the children’s care) and as trustee (responsible for managing any money left for the children). In fact, this is often a wise approach—the best caregiver and the best financial manager may be different people.
Short-Term vs. Long-Term Guardians
Something many parents don’t realize: there are two distinct guardian roles worth thinking about. A long-term guardian is the person who would raise your children over the years. But there’s also the immediate, short-term question of who would care for your children in the hours or days right after something happened to you—before a long-term guardian could be located and notified.
Naming both a short-term and long-term guardian, and making sure the relevant people know about your plan, can prevent your children from spending even a brief period in unfamiliar or uncomfortable circumstances.
Managing Money for Your Children
If you leave assets to minor children outright, they would receive them at age 18 under Colorado law. For most parents, handing a teenager a significant inheritance is not what they had in mind.
A trust allows you to control how and when assets are distributed. You can specify that funds be used for education, health, and general support—with a trustee you trust managing the money—and that remaining assets be distributed at whatever ages you choose: 25, 30, in stages, or according to other conditions you define.
This kind of structure also protects the money from creditors and poor decisions during the years when your children are still developing financial judgment.
What Happens to Your Children’s Inheritance If Your Spouse Remarries?
This is a question many parents don’t think to ask, but it’s an important one. If you die and leave everything to your spouse outright, and your spouse later remarries, your assets could ultimately pass to a new spouse and their family—rather than to your children.
There are trust structures designed specifically to address this concern, allowing a surviving spouse to be provided for during their lifetime while protecting the underlying assets for your children. This is an area where the right planning can make an enormous difference.
Life Insurance and Your Estate Plan
For parents of young children, life insurance is often one of the most important financial tools available. It provides liquidity—the ability to replace lost income and cover ongoing expenses—at precisely the time when it’s most needed.
A few estate planning considerations around life insurance:
- Make sure your beneficiary designations are current and intentional. If you name minor children directly as beneficiaries, the proceeds may be held by a court-appointed guardian of the property until the children turn 18—not managed by the person you would have chosen.
- Naming a trust as the beneficiary of a life insurance policy can give you control over how and when the proceeds are used for your children.
- Review coverage amounts periodically. The coverage that made sense when your oldest was a baby may not be adequate when you have three children and a mortgage.
Powers of Attorney and Healthcare Documents
An estate plan for parents isn’t only about what happens after death. You also need documents that address incapacity during your lifetime—because your children need you to be protected and functional, not just your assets.
A durable power of attorney for finances names someone to manage your financial affairs if you cannot. A healthcare power of attorney names someone to make medical decisions for you. A living will expresses your wishes about end-of-life care. Together, these documents ensure that the right people are in charge if something happens to you—without requiring court involvement.
Don’t Wait for the “Right” Moment
There is a tendency among young parents to feel like estate planning is something to do “once things settle down”—after the baby is sleeping through the night, after the home purchase closes, after the busy season at work.
The honest truth is that the stakes are highest right now, when your children are young and most dependent on you. The process is also faster and more manageable than most parents expect. For many families, a complete plan can be put in place in two simple meetings.
Andy Gitkind has been helping Boulder County parents build practical, thoughtful estate plans since 2004. If you’re ready to get this done—or even just ready to understand what’s involved—the first consultation is always complimentary.
Gitkind Law Firm, P.C. | 801 Main St., Suite 230, Louisville, CO 80027 | 303-960-6628 | gitkindlaw.com