Legal Documents Every Parent Should Have

While no one wants to contemplate scenarios where they're potentially unable to care for their children due to incapacity or passing, the reality is that life is unpredictable, and these events can happen to anyone. 

Appropriate documentation and planning are essential to preventing avoidable disruptions to your child(ren)'s daily lives. Without the necessary documents in place, guardians and financial decision-makers may need to be appointed through court proceedings, which can drain valuable time and money. Additionally, critical expenses, such as school fees, medical care, or mortgage payments, might be held up or even go unpaid until someone can gain access to your resources.

Effective estate planning is the proactive approach to protect your children from these complications, ensuring they experience as much continuity as possible, even during turbulent times.  

4 Essential Legal Documents for Parents

1. Last Will and Testament

Your will is the foundation of your estate plan. This document allows you to dictate how your assets are distributed upon your passing and, most importantly, name a legal guardian for your minor children if something happens to you.  It also allows you to structure an inheritance, should you pass while a child is still a minor, or if you have a child living with disabilities or mental illness.  

Without a will, the court will make the final decision about who will take care of your children. This process can be lengthy, costly, and emotionally taxing for your loved ones, as it involves petitioning the court and potentially attending multiple court hearings. By creating a clear and thoughtful will, parents can ensure that their children are raised by a trusted individual who aligns with their values and parenting style.  

2. Power of Attorney  

A power of attorney allows you to name a trusted individual who will manage your financial affairs if you become unable to do so. This is particularly critical because your children, as minors, won't be eligible to handle financial matters themselves.  

Suppose you're incapacitated — maybe sick or hurt — and can't manage your financial affairs for a while, i.e. paying bills, cashing or writing checks, or filling out financial paperwork. The person you designate as agent under your power of attorney can step in to pay your bills, keep the mortgage up to date, and make sure your children have what they need without the hassle of a lengthy legal process. To put it simply, having a properly drafted power of attorney allows your agent to help maintain some sense of normalcy for your children during difficult times.  

3. Healthcare Proxy  

Just as a power of attorney handles financial decisions, a healthcare proxy empowers someone you trust to make medical decisions on your behalf if you cannot. It's essential to select someone who understands your healthcare and end of life wishes, and will effectively advocate for you. This person acts as your voice, when you are not able to speak for yourself.

While this document primarily focuses on your medical care, its role indirectly impacts your children by ensuring that your health and recovery are prioritized, helping to minimize further disruptions. It also allows you to nominate a person to make these decisions, which helps to eliminate disagreements during stressful times.  

4. Standby Guardianship Document  

A standby guardianship document is ideal for short-term scenarios, such as a two-week vacation or an emergency hospitalization, where you are temporarily unavailable to care for your children.  

This document grants a caretaker the legal authority to make essential decisions, from school pick-ups to medical emergencies. Without it, caregivers may struggle to obtain the necessary permissions, resulting in disruptions to your children's routine during both a planned and unplanned absence.  

A Word About Trusts  

Trusts can play a key role in estate planning for parents. While your will determines how assets are distributed, a trust allows you to manage when and how your children receive their inheritance.  

Imagine that your child, still navigating young adulthood at age 18, inherits a large sum of money from your estate. Without specifying the proper conditions, this could lead to poor financial decisions and/or ultimately result in waste of assets, which you have worked hard to accumulate. A trust enables you to specify age milestones or maturity levels for access to those funds, ensuring they're used responsibly.  

For families with children who have disabilities, who are living with mental illness or a substance use disorder, or who receive government benefits like Medicaid, trusts can also be tailored to provide additional resources without disqualifying them from crucial support programs. Trusts are also particularly helpful if you have bonus (step) children, or a blended family.  

Risks of DIY Estate Planning  

With the availability of online templates and DIY estate planning software, the temptation to manage this process yourself is understandable. However, these one-size-fits-all tools often fail to address the nuanced needs of families, such as naming guardians, managing blended family dynamics, or protecting children with disabilities, mental illness or substance use disorders. The result? Oversights that leave your family vulnerable to legal and financial roadblocks.  

When it comes to protecting your loved ones and ensuring your wishes are honored, nothing compares to the guidance and expertise of a dedicated estate planning attorney. By working with a professional, you can be confident that every aspect of your family's unique situation is thoughtfully addressed and that your children's future is secure, no matter what life brings. With an individualized estate plan, you should feel empowered through all of life’s transitions.