Make a will

You can choose anyone that is legally able to care for your children. It does not have to be a family member. If you do not appoint a guardian in your Will, the state will decide who cares for your children.

Before appointing a guardian, ask yourself the following questions:

• Is the person mentally and physically healthy enough to care for your children? Are they young enough to raise your kids?
• Is the person financially stable and can you trust the person to manage the money left for the care of your children?
• Do they live in an area or would they be willing to remain in a location of your choice? Such as a certain school district or close to other family members.
• Do they have children similar ages? Or, do they have too many kids?
• If I have many children, do I want to keep them together or would splitting them up be okay?
• Do they have beliefs similar to mine? Religion, education, health care preferences and diet may be topics to consider.
• What would happen if the couple you choose later divorces?
• Do your older children have a preference?
• Do you need another person to manage your children's trust or inheritance?

After you choose a few candidates, discuss their duties with them to see if it is something they'd want to agree to. You want to pick those who are not only capable but willing.

Assets held in a Living Trust can be distributed more quickly than a Will. If you can afford to fund a Trust it can be used to provide for your children until the rest of your assets and insurance payments are released.

Advantages to Living Trusts include (depending on the type of Trust):

• Speedy allocation of assets
• No need for probate
• They are private
• Trusts are difficult to challenge
• Assets are not subject to creditors
• They can control how and when assets will be allocated

An inheritance tax is a state tax paid by the one who receives money or property from a deceased person. Most states no longer charge this tax. An inheritance tax differs from an estate tax. An estate tax is taken from an entire estate before assets are allocated. Not all estates have to pay an estate tax since the threshold is rather high. The 2017 federal exemption level was for estate taxes was $5.49 million. The federal inheritance tax lower threshold for 2018 is $5.6 million. Roughly only two percent of estates are obligated to pay these taxes.