Planning for minor children and young adults is one of the most important parts of estate planning for parents and grandparents. Many Wisconsin families have questions about guardianship, inheritance planning, powers of attorney, and how to protect children if something unexpected happens.
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What happens to my minor children if I pass away without a will in Wisconsin?
If a parent dies without a will, a Wisconsin court may decide who will care for the minor children. The court focuses on the child’s best interests, but the process may create stress and disagreements among family members. Naming a guardian in a will allows parents to express who they would want caring for their children.
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Can I name a guardian for my children in my estate plan?
Yes. Wisconsin parents can nominate a guardian for minor children in a will. This gives the court guidance about who the parents believe should care for the children if both parents pass away or become unable to care for them.
Parents often consider:
- The guardian’s parenting style
- Financial stability
- Location
- Relationship with the children
- Shared values and beliefs
Wisconsin courts may give significant weight to a parent’s nomination. The court will still review whether the appointment serves the child’s best interests.
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At what age can children inherit assets in Wisconsin?
In Wisconsin, minors generally cannot directly manage inherited assets until they reach age 18. If assets are left directly to a child, the court may need to appoint someone to manage the money until adulthood.
Many families use trusts to avoid giving a large inheritance to an 18-year-old all at once.
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Should parents create a trust for minor children?
Many Wisconsin families choose to create a trust for minor children because it allows parents to:
- Control how assets are distributed
- Delay inheritance until a more mature age
- Protect assets from misuse
- Provide financial support for education or healthcare
- Avoid unnecessary court involvement
Parents may decide that children receive portions of inheritance at different ages, such as 25, 30, or older.
Learn more about trusts on Krueger Hernandez & Thompson S.C. Trust Planning Page.
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What is the difference between a guardian and a trustee?
A guardian cares for the child’s daily needs, including housing, education, and healthcare decisions.
A trustee manages money or property left for the child.
Parents may choose the same person for both roles, or they may select different individuals depending on family circumstances and financial experience.
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Can grandparents include grandchildren in their estate plan?
Yes. Grandparents often include grandchildren in wills or trusts. Some families create educational trusts or leave funds for future expenses like college tuition, medical needs, or housing.
Grandparents should review beneficiary designations and estate planning documents regularly to ensure they still match family goals.
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What happens if both parents become incapacitated?
Estate planning can help prepare for situations where parents are temporarily or permanently unable to care for children due to illness or injury.
Parents may use:
- Powers of attorney
- Temporary guardianship documents
- Revocable living trusts
- Healthcare directives
Having these documents in place can help avoid confusion during emergencies.
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Why do young adults need powers of attorney after turning 18?
Once a child turns 18, parents no longer automatically have authority to make medical or financial decisions for them, even if the young adult is still financially dependent or attending college.
Young adults may benefit from:
- A healthcare power of attorney
- A financial power of attorney
- HIPAA authorization forms
These documents may help parents assist during medical emergencies or financial matters.
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Should college students have estate planning documents?
Yes. Many families are surprised to learn that privacy laws can prevent parents from accessing medical information once a child becomes an adult.
College students and young adults often consider:
- Healthcare powers of attorney
- Financial powers of attorney
- Living wills
- HIPAA authorizations
These documents may help avoid delays if emergencies occur while the student is away from home.
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Can life insurance help protect young children financially?
Life insurance is commonly used in estate planning for families with young children. It may help provide financial support for:
- Childcare
- Education expenses
- Mortgage payments
- Daily living expenses
Parents often review beneficiary designations carefully to avoid naming minor children directly without proper planning.
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What should parents avoid when planning for minor children?
Some common estate planning mistakes include:
- Failing to name a guardian
- Leaving assets directly to minor children
- Forgetting to update beneficiary designations
- Not creating powers of attorney
- Choosing guardians without discussing responsibilities first
- Waiting too long to create an estate plan
Reviewing estate plans regularly can help families keep documents current as children grow and family situations change.
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How often should parents update their estate plan?
Families should review estate plans after major life changes, including:
- Birth or adoption of a child
- Marriage or divorce
- Moving to another state
- Significant financial changes
- Changes in guardians or trustees
- Children reaching adulthood
Many families review their plan every few years to confirm it still reflects their goals. You can also review general information about guardianship and family preparedness through the American Bar Association estate planning resources.
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Why is minor children and young adult planning important?
Minor children and young adult planning helps Wisconsin families prepare for unexpected situations while protecting children’s financial and personal well-being. Estate planning documents can provide guidance for caregivers, help manage inherited assets responsibly, and reduce uncertainty for loved ones during difficult times.
You don’t want to end up losing control over your legacy or not leaving assets to the right people due to problems with your will, so reach out to Krueger Hernandez & Thompson SC today to talk with a Middleton, WI estate planning lawyer who can help you avoid will mistakes and end up with the legacy you deserve.
You can give us a call at (608) 824-9540 or contact us online to learn more.
