Planning for Minor Children: Guardianship and Trusts Explained​​​​

Parents don’t like to think about not being there for their children. But planning for the possibility is one of the most responsible steps you can take. If you have minor children, your estate plan needs to include more than just a will. It should also name a guardian and set up a financial plan that protects your child’s future.

In New York, two essential tools to help you do this are guardianship designations and trusts. These work together to ensure your children are cared for by someone you trust and that their inheritance is managed responsibly until they are old enough to handle it themselves.

Why Guardianship Should Be Part of Every Parent’s Estate Plan

If something happens to you and your child is still a minor, someone needs to step in and take over the role of caregiver. That’s what guardianship is for. A legal guardian is someone who has the authority to make decisions for your child, including where they live, where they go to school, and what medical care they receive.

If you don’t name a guardian in your estate plan, the court will decide who should raise your child. This process can take time and cause unnecessary stress, especially if family members disagree about what’s best. By naming a guardian in your will, you take that uncertainty out of the equation and give your child a stable path forward.

How to Choose the Right Guardian

Choosing a guardian is never easy. It’s a personal decision, and there’s no perfect answer. What matters is that you pick someone who shares your values, has the ability to provide a safe and supportive home, and is willing to take on the responsibility.

You might choose a family member, a close friend, or even a couple. It’s often a good idea to talk with the person ahead of time to make sure they are comfortable with the role. You can also name a backup guardian in case your first choice is unable to serve.

In New York, you make the guardianship designation in your will. It only takes legal effect if both parents are deceased or otherwise unable to care for the child. Until then, your chosen guardian does not have any legal authority.

Protecting Inheritance with a Trust

Alongside naming a guardian, you also need to think about how any money, property, or insurance payouts will be managed for your child’s benefit. Children under 18 cannot legally manage assets, so if you don’t plan ahead, the court will appoint someone to do it for them. That person may not be the same one you would have chosen.

This is where a trust becomes important. A trust allows you to set aside money or property for your child and name a trustee to manage it. You decide how and when the funds are used—whether for education, living expenses, or other needs.

Without a trust, the money may be turned over to your child in full when they reach age 18. That’s a young age to manage a large sum of money. With a trust, you can stagger distributions over time or set specific milestones, such as college graduation or turning 25.

Types of Trusts for Minor Children

There are different kinds of trusts that can serve this purpose, but most parents creating an estate plan in New York use one of the following:

• Testamentary trust – Created through your will and only comes into effect after your death. It’s useful for parents who don’t want to set up a separate trust right away but want to include it as part of their estate plan.

• Revocable living trust – Created during your lifetime and can hold assets while you’re still alive. This trust can continue to support your children if you pass away or become incapacitated. It also avoids probate, which can save time and money for your family.

• Custodial account under UTMA – While not a trust, a custodial account set up under the New York Uniform Transfers to Minors Act allows you to name a custodian to manage funds until your child reaches age 21. However, the child gains full control at that age, which doesn’t offer long-term asset protection.

Each option has its pros and cons. A trust provides more flexibility and control, while a UTMA account may be easier to set up for smaller amounts.

Naming a Trustee You Can Rely On

Just as you choose a guardian to care for your child, you’ll need to choose a trustee to manage the trust. This can be the same person or someone different. Some parents like to separate the roles to keep a balance of responsibility. For example, the guardian might handle the child’s day-to-day care while the trustee handles financial decisions.

Your trustee should be someone responsible, detail-oriented, and trustworthy. You can also name a professional trustee—such as a lawyer, accountant, or bank trust department—if your estate is large or you prefer a neutral third party to handle finances.

What Your Plan Might Look Like

Here’s how these pieces work together in a real plan:

• You write a will naming a guardian for your minor children.

• You include instructions to create a testamentary trust for each child if you pass away while they are still minors.

• The trust receives your life insurance proceeds, savings, or other assets.

• A trustee you choose manages the trust and makes decisions based on your instructions.

• Your children receive support from the trust until they reach the age or milestones you set.

With this structure, you maintain control over your child’s care and financial future, even if you’re no longer here.

Don’t Forget to Review and Update

Once your plan is in place, it’s important to revisit it every few years or after a major life change. If you move to another state, get divorced, have another child, or experience changes in your finances, your documents may need to be revised.

Laws in New York may also change, and what made sense five years ago might not be the best option now. An estate planning attorney can help you review your documents and make any needed updates.

Conclusion

None of us can predict the future. But taking the time now to put a guardianship and trust plan in place gives your children a level of security and guidance that’s hard to measure. It also helps avoid court battles, financial confusion, and family tension during an already difficult time.

At our New York estate planning firm, we help parents create clear, legally sound plans that reflect their priorities and protect their children. If you’d like help building or reviewing your plan, contact our office today. We’re here to make the process straightforward and to give you peace of mind knowing your family is covered.