Are you a grandparent raising your grandchild? Maybe you know a grandparent who has wholeheartedly accepted this responsibility?
While an estate plan is important for any family, one where a grandchild is being raised by a grandparent brings up additional concerns and situations to address.
Legal issues can arise over who has legal custody of the child. Is it the parent or the grandparent? Legal custody determines who ultimately has the right to make decisions for the child regarding medical, financial and even educational issues. It’s important to have the custody clear and legally protected.
Additionally, an estate plan for this type of family situation needs to provide for the proper transfer of assets from grandparent to grandchild. This doesn’t automatically happen if a valid will has not been created. As the grandparent, you will want to make sure your estate plan properly addresses the assets to be given to the grandchild.
Another aspect is who will handle the assets or take care of the grandchild if the grandparents are no longer available for such care. The naming of a trustee as well as a future guardian is beneficial in this instance. If legal custody is not clear, consider having a health care directive in place so you, the grandparent, can make medical decisions for your grandchild.
If you are raising grandchildren, we applaud you. Know that we stand ready to help ensure your grandchild is properly protected and cared for in the event misfortune prevents you from continuing this incredible endeavor.