New York City parents are known for doing everything we can to protect and care for our children. Yet, many parents don’t realize the importance of estate planning in securing their child’s future if the worst were to happen. Estate planning, particularly around probate, can be complex, and misunderstanding these legal steps could put your child’s wellbeing at risk. Watch our webinar replay, A Look Behind the Probate Curtain, to learn about the New York probate process.
Here are five key things every parent should know about the probate process and why proper estate planning is essential.
1. The Court Chooses Your Child’s Guardian If You Don’t
If you and your spouse pass away without nominating a guardian in your wills, the New York probate court will decide who raises your children. While you may have someone in mind—like a close relative or trusted friend—the court may not choose the same person. If multiple people come forward wanting to be the guardian, it could lead to a legal battle that adds emotional stress to an already difficult time. Making your wishes clear in a legally binding will avoids leaving this decision to the court. Learn how to name a guardian in our article, Five Tips for Choosing Your Child’s Guardian.
2. Without a Will, Your Spouse Won’t Inherit Everything
If your spouse dies without a will, and you have children together, you won’t automatically inherit their entire estate. Instead, you would receive $50,000 plus half of what remains. The other half would be split equally among your children, and you would have to maintain their shares in separate accounts that are supervised by the court. On top of managing these accounts, you would also need to justify to the court how any of the money is spent—even if it’s for your own child’s care.
3. Minor Children’s Inheritances Are Subject to Court Supervision
Leaving assets outright to a minor child will place those assets under New York court supervision until your child turns 18. A court-appointed guardian would oversee the child’s inheritance, but this role comes with restrictions. Routine decisions like making investments or covering normal childhood expenses may require court approval, leading to delays and additional costs. This court oversight continues until the child becomes a legal adult, at which point they receive full control of the remaining inheritance. Read more in our article, Why You Should Never Name Your Child as a Beneficiary
4. Equal Inheritance May Not Be Fair
Dividing your estate equally among your children might seem like the fairest solution. However, this can be inflexible when real-life situations arise. For example, if one of your children has a disability or a medical condition, they may need more financial support than their siblings. Likewise, older children may need less financial help than younger ones. An equal split of assets doesn’t allow for these differences, and each child’s share would have to be managed separately, even if one child needs more support.
5. An 18-Year-Old Will Have Unrestricted Access to Their Inheritance
When your child turns 18, they will have full control over any assets left to them. While this seems reasonable on the surface, many young adults lack the financial maturity to handle significant sums of money responsibly. Without guidance or restrictions, they might make poor financial decisions, draining the inheritance long before they fully understand its value or how to manage it. This can be especially risky if they inherit a large amount of money at once.
The Importance of Estate Planning
Proper estate planning with a qualified New York probate attorney allows you to make informed decisions about your child’s future, especially when it comes to guardianship and inheritance. Setting up a trust or other legal structures can provide your children with the financial support they need, while also ensuring that the assets are managed wisely until they reach a more responsible age. Estate planning also gives you control over important decisions that the probate court might otherwise make for you.
By planning ahead, you protect your children from the complications of the probate process and ensure they are cared for, both emotionally and financially, in your absence. Don’t wait until it’s too late to put these important plans in place; meet with a estate planning attorney at The Village Law Firm. Book an Initial Call to discuss your estate planning options. Our team is dedicated to the particular needs of young and growing families in New York City. Request your free copy of Complete Guide to Legal Planning for New York Parents.
