The Guardianship Question
For parents of young children, the most urgent estate planning question is not about money at all. It is about who will care for your children if something happens to you. In Arizona, if both parents pass away without a will that names a guardian, the probate court appoints one. The court’s choice may or may not be the person you would have selected.
Naming a Guardian in Arizona
A will allows you to name your preferred guardian for your minor children. You can also name an alternate in case your first choice is unavailable or unwilling to serve. While the court is not legally bound by your designation, a clearly expressed preference in a valid will carries significant weight and is typically followed in uncontested situations.
How Minor Children Inherit
In Arizona, minor children cannot directly manage significant assets. If a child under 18 inherits money or property outright, the court typically appoints a conservator to manage those assets until the child reaches adulthood. At 18, the child receives everything with no restrictions. For most parents, leaving a substantial sum outright to an 18-year-old is not the intended result.
Using a Trust for Minor Children
A trust can hold assets for your children’s benefit under the management of a trustee you choose. The trust document specifies how funds can be used — for education, healthcare, housing, and other needs — and when distributions are made. You can set the age at which the child receives the remaining funds outright, whether that is 25, 30, or some other milestone that makes sense for your family.
Coordinating Life Insurance
For many young families, life insurance is the most important financial asset in the event of an early death. But life insurance proceeds paid directly to a minor child may be subject to the same conservatorship issues as any other inheritance. Naming your trust as the beneficiary of life insurance policies ensures the funds are managed according to your instructions rather than subject to court oversight.
Estate planning for young families is one of the most important things you can do for the people who depend on you. Kierman Law works with Arizona families at every stage of life to put the right protections in place. If you are in Arizona, call us at 480-719-7333 or visit kiermanlaw.com to get started.
This content is for informational purposes only and does not constitute legal advice. Please consult an attorney for guidance specific to your situation.