For many new parents, estate planning can be one of those things they know they should do but is easy to keep postponing. Between doctor appointments, sleepless nights, and adjusting to new routines, it can be difficult if not emotionally painful to think about worst-case scenarios.
However, becoming a parent also means taking responsibility for decisions a child cannot make for themselves. If something happened to both parents, who would raise the child? Who would manage the money and other assets left behind? Would that person understand the parents’ wishes about education, healthcare, and the values they’d hoped to pass down?
In Minnesota, wills and trusts can help parents answer these questions. While each document serves a different purpose, using both together can create a more complete plan for protecting a child’s future.
How a will and trust serve different roles
A will is often the starting point for parents who want to create an estate plan. Wills allow parents to nominate a guardian for their child in the event of both parents’ deaths. While the nomination would still require court approval, the will gives the court great insight into who the parents identify as a trustworthy person capable of providing care, stability, and guidance for their child.
For example, parents may choose a relative who already shares a close relationship with their child and understands their family’s values. They may consider whether that person can support their child through different stages of life, from helping a young child adjust to a new home, to guiding an older child through education and major life decisions.
A will can also outline how certain assets should be distributed to the child after the parents’ deaths. However, a will alone may not provide enough control over how a child receives inherited property or money.
Because minors cannot typically manage significant assets on their own, leaving property directly to a child can create additional legal steps. A court may need to oversee how those assets are handled until the child reaches adulthood or other legal arrangements are established.
A trust can provide another layer of planning, allowing parents to decide how assets should be managed and used for their child’s benefit. In addition, a trust can set out when assets should be distributed. For example, instead of providing a child with full access to an inheritance at age 18, parents can provide for certain percentages to be distributed at predetermined ages over time (e.g., ages 25, 30, and 35), or at predetermined milestones (e.g., graduation from college or trade school).
Why many parents choose both a will and trust
A trust does not replace a will, and a will does not provide every benefit of a trust. Each document addresses different parts of a family’s estate plan, which is why many parents choose to use both.
A trust can help parents create a more detailed financial plan that reflects their child’s changing needs over time. For example, the expenses involved in raising a young child may include childcare and after-school activities, while an older child may need support with college tuition, career training, or putting a down payment on a house. A well-prepared plan allows parents to account for those changes instead of making decisions based only on their child’s current age and situation.
Creating a plan that grows with the family
Estate planning allows parents to make important decisions while they are still able to communicate their wishes. A will and trust can work together to provide direction, financial support, and stability for a child’s future.
While no parent can predict every challenge their child may face, thoughtful planning can help provide protection during uncertain times. Because every family has different circumstances and goals, parents should seek legal guidance to create an estate plan that reflects their needs under Minnesota law. For more information, call the attorneys at Sjoberg & Tebelius, P.A. (651) 738-3433.