Within England and Wales; only a Last Will and Testament enables a person to allocate over possessions, property and funds either directly or indirectly (through a trust) to the guardian for the upkeep of a child. This cannot be done using an Appointment of Guardian Agreement.
When it comes to raising children, their upkeep does not come cheap. Over the years, the cost of bringing up children soon mounts up. Feeding, clothing, entertaining and schooling them isn’t cheap. Your guardian will end up assuming all these responsibilities along with all the additional expense that accompanies them. Considerately you have a requirement to leave the guardian a significant proportion of your wealth; where possible, that would be considerable enough to reimburse them for the expense of bringing up your kids.
Generally, the younger your kids, the more wealth you’ll need to give your guardian as it likely that it will be a longer time frame before the girl or boy is in a position to take care of and provide financially for them self. It is possible for a child to gain full time employment upon school leaving age, typically 16 years old; yet unlikely at first to pay a sufficient amount for them to fully take care of themselves. Many kids go on to further education and lots of parents would typically encourage this of their children; this could add on many more years of additional maintenance and extra financial assistance before the child (likely turned adult) can provide for themselves.
The cost associated with guardianship could go on for a lifetime should a child be disabled and need a lifetime of care. Also, there are likely to be further additional needs to support a disabled child increasing the costs of maintenance still further.
When planning provisions to be left behind for the maintenance of your child/children it would make sense to go over the situation and requirements with your would-be guardian so that you can discuss your situation with them and gather information about what help and assistance they feel they will require handling the additional responsibility.
There are no preset ways that you should use to provide your guardians with extra financial assistance when raising your child. Perhaps in could be a lump sum or a set percentage of your wealth written in to your Last Will and Testament. May be a life insurance policy is created by you for this purpose. It might be money set aside into a trust fund for your child and utilized after your death. Perhaps you may authorise the sale of possessions within a Last Will and Testament, the proceeds from the sales going to the guardian. The flexibility of choice of how you do it is up to you and it would be prudent to take into account your guardians’ needs whilst choosing. If the matter is too daunting a task you could always seek the added assistance from a professional when making the arrangements.
Property may be left within a Last Will and Testament or perhaps under the rules of intestacy to an under aged boy or girl. Under this circumstance then the remaining parent or lawful guardian gains total and single control over the governing of the child’s gift. What happens with such gifts is placed completely under their control to do whatever they want with.
If the person who was selected as guardian within a Last Will and Testament is incapable or declines to carry out the role and there is no substitute appointed to pick up the role then the situation is the same as if no guardians were selected at all. Under this situation, the matter of who would be taking care of the child is referred to the social services system who will aim to place the child with close relatives where possible. Where there are not any relatives with whom they can place the child then the child will have to be placed with foster parents. Within the Last Will and Testament or via intestacy any property and money left to the child will be collected together and passed to a Public Guardian and Trustee to look after for the child.
Your child under the laws for England and Wales may be classed as an adult; however just turning eighteen often does not mean they are grown up enough to act responsibly with your lifetime of accumulated wealth in their hands! Bearing this in mind; you could be more strategic about the way you hand over your wealth to your children. You can specify the release of your wealth to them at any age you choose to denote within your Last Will and Testament. If you feel they will have more respect for your property and estate when they reach twenty-five years of age then you could select this as the age for receiving their gift. There would also be nothing to stop you releasing their gift a piece at a time. When you retain back money to provide delayed gifts then that wealth must be placed into trust.
Choosing The Right Person To Be Executor.
Why Have Multiple Executors?
Appointing An Executor.
Rules Surrounding Guardianship
Selecting Your Guardian
Appointing A Guardian
Intro to Trustees
Introduction To Trusts