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       My youngest sister will be having a baby soon. We were discussing wills recently, and she wisely brought up the question of how to choose a guardian for your child. I gave her some basic tips in an email, but I thought it would make a good topic for a post. This is an expansion of the advice I gave my sister.

What Is a Legal Guardian? Why Should I Choose One?

       A legal guardian is an adult who is designated to care for your child if both you and your spouse die or become incapacitated. If you don’t choose one, the courts will choose one for you.

       You shouldn’t assume that family will automatically get custody of your child. Unless you have a named guardian in your will, a judge will choose the guardian for your child. While the courts look most favorably upon choosing family members, they are free to pick anyone they choose. If they can’t find someone who is capable and qualified, your child could end up in foster care. If that’s not reason enough to designate a guardian, I don’t know what is.

       It’s also wise to name an alternate guardian in case your first choice is unable or unwilling to accept the responsibility. This can be easily handled in your will.

Choosing the Right Guardian

       The first thing you must realize is that you won’t find a perfect guardian for your child. Your job is to find the best guardian you can – not a perfect one. Start by making a list of all the possibilities. Then discuss each possibility with your spouse. Here are a few factors to consider when narrowing down your list:

• Do the person’s religious values, beliefs, and parenting style & technique closely match yours?

 

• Will the person be able to manage the responsibility of caring for your child? (financially, physically, and emotionally)

 

• Is your child comfortable with the person?

 

• Does the person have other children? Will your child fit in well with the family?

 

• Does the person live close to you, or would your child have to move far away? (changing schools, losing friends, etc. in the process)

Should I Choose a Different Person to Manage My Estate?

       Hopefully, you’ll leave behind an estate that can help cover the costs of raising your child. If you do, you must decide if you want the legal guardian to also be the manager of those funds or if you should pick someone else. Having one person do both keeps things simple and makes it easier for the guardian. However, there are cases where you might want to pick a different person.

       Clearly, if the person you’ve chosen as your child’s legal guardian is not good at managing their own finances, you probably don’t want them to manage your child’s inheritance either. (Although, if this is the case, why would you pick them to be the guardian?!)

       You might also select a different person to be the trustee so you can keep them involved in your child’s life. Your parents could be a good example. They might be too old to raise your child, but by choosing them to be the trustee you can keep them involved in your child’s life without the day-to-day responsibilities.

       In either case, you’ll want to make sure that both the legal guardian and the trustee can work together well. Any complications could make a difficult situation worse.

Get the Person’s OK Before Signing Your Will

       Finally – and this should be obvious – make sure you’ve discussed this with the person you’d like to select as your child’s legal guardian. You don’t want them to be caught by surprise after your funeral. It would be quite foolish to pick someone without discussing it with them first.

       This is also a good way to narrow down your final list. One person may decline the responsibility. Another may be more than happy to take on this role. This makes your choice much easier.

Your Thoughts

       What advice would you give to my sister as she goes through the process of choosing a legal guardian? Share your thoughts in the comments below!


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1. What’s Your Background & Experience?

       There are numerous fields of expertise in the practice of law. Real estate, business, family, and estate are some of the major ones. Obviously, you’d prefer an attorney who specializes in the area where you need help – estate law in this case. Find out how long the attorney has been practicing in this area, where they went to school, who they’ve worked for previously, and how much of their time is currently spent on situations similar to yours.

2. What’s Your Process?

       Ask how the attorney will be working with you. How is information gathered? How are revisions made to my documents? How many revisions are included in my fee package? Are there any ways I can lower the costs by being more prepared/doing things myself? The answers to these questions will help you know what to expect and also uncover some ways you may be able to pay less.

3. Will You Do the Work Yourself?

       Attorneys often pass off some of their work to paralegals or junior attorneys within the firm. Find out how involved the attorney will be with your situation. If other people will be working on the matter, your fees should reflect that fact. The time that paralegals and junior attorneys work on your situation should cost less than the attorney’s fee.

4. How Do You Charge?

       Does the attorney work on an hourly basis, for a flat fee, on retainer, or on some combination or other method? What are the fees involved for the attorney’s time? How are expenses (like copying, filing fees, mailing, etc.) handled and charged? What are my payment options? How will I be billed? Be sure you understand the attorney’s compensation and what expenses you’ll be responsible for before hiring the attorney.

5. What Will This Cost Me?

       The attorney should be able to give you an estimate for the total cost of the services you need. If you’re getting a will, power of attorney, and advance medical directive, the attorney should be able to provide you with a general cost for these documents. If the attorney is unwilling to provide you with an estimate or remains vague, move on and find someone who will be more upfront. Understand that while it can be difficult for the attorney to know what the total cost will be, they should be willing to provide you with a possible and reasonable range of fees.

Your Thoughts

       What other questions would you ask before hiring an attorney? Share your thoughts in the comments.

Related Articles at Provident Planning:

1. Make a Will for Free
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3. Who Should Own Your Life Insurance Policy?
4. Why You (Probably) Don’t Need Permanent Life Insurance
5. Hiring a Financial Planner: The First Phone Call

First, Learn the Basics

       This is especially true in personal finance. You don’t have to be a seasoned financial planner to begin finding success. You don’t even need to spend a ton of time to understand the basics. They’re simple. Spend less. Earn more. Save and invest. Be wise and cautious when making purchases (goods, services, or investments). Plan ahead. Don’t pay things you don’t have to (like extra taxes). And so on. A basic education is all you need to start finding success in your personal finances.

       You don’t need an accounting degree to make a budget. You don’t have to be Warren Buffet to start investing. You don’t have to go to law school to get your estate documents in place.

Then, Take Action

       Success in personal finance is not necessarily about knowing all the right answers. It’s about taking action. Those who only read about the benefits of budgeting will never be as successful as those who actually try to make a budget and stick to it. This is true even if the doers are not successful the first time.

       You can learn by reading about the experiences of others – but only so much. Until you start creating your own experiences, the information will just be knowledge in your head. You must start using it yourself!

       Don’t think I’m discounting the value of learning, education, and research. To be truly successful, you’ll have to keep learning. But you can’t get started on the road to success unless you follow a pattern of learning, doing, learning, doing, and so on.

Avoid Danger Areas!

       I’ll end with a few cautions especially true in personal finance. In some areas of personal finance, there are unscrupulous people who will try to take advantage of your lack of education. Insurance, investing, and debt are the most common places you’ll run into this, but you can really find it anywhere. Here’s the key: Before doing something, make sure you’re aware of the possible problems/pitfalls and educate yourself on how to avoid them.

       Here’s an example. In investing and insurance, you must be aware of how advisors and salesmen get paid. If it’s commissions, know what conflicts of interest might exist. In other words, learn how people might try to rip you off and be on the lookout for those techniques.

       Even though there are risks to the learn, do, learn method, you can avoid most major mistakes by learning first about the danger areas and how to avoid them. In personal finance, be aware of those who earn commissions, learn the math of debt, and read the academic research on investing.

Now Do Something!!!

       So get out there and start doing the needed things to achieve success. Stop reading about budgeting and do it! Stop worrying about having enough for retirement and start saving! Stop dreaming of starting your own business and do it! You’re never going to get anywhere until you take action.


P.S. I think I wrote this as much for me as for anyone else. I have the curse of perfectionism, and I must battle it every day. There is no such thing as perfect in this world. Only God is perfect. So I need to stop worrying about doing everything perfectly and just start doing. What about you?

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1. Weekend Reading – 05/28/2010
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5. What Makes Christian Personal Finance Different?

       There may be some points in which Christian personal finance and secular personal finance will differ, but, generally speaking, good personal finance advice is the same regardless of your religion. The difference – and this is a major difference – is in the ultimate purpose, the final goal, of following that good advice.

       As far as the world is concerned, it makes sense to make smart personal finance decisions because that’s what is best for you. Good money management will help you meet your goals, maximize your wealth, and get the most out of the money you’ve earned. And according to the world, that’s what you should do with your money. Use it for the things you want. Use it to meet your goals and fulfill your dreams.

       But for Christians, making smart decisions in our finances is not important just so we can maximize our wealth and meet all our desires. Our purpose is not to find fulfillment in this world and the things it offers. Our purpose is to honor and glorify God – to serve Him with our entire being in everything we do. Our goal is to do His will. And part of God’s will for us is to share His love by caring for those in need through generous giving. We don’t try to maximize our wealth for our own use. We try to maximize our wealth for God’s use.

       I want you to remember this as you read the articles I write. Many times there won’t be a Bible verse in a post. Personal finance in the Bible is more about the principles that should govern our decisions – not specific applications (like how to get out of debt). But it’s very important that we remember the purpose of seeking and following good financial advice.

       When I talk about spending less, it’s so we’ll have more to give. When I talk about earning more money, it’s so we’ll have more to give. When I talk about making smart financial choices, it’s so we’ll have more to give. It all comes back to giving – giving motivated by love that flows out of our response to God’s Gift to us.

       Yes, making good financial decisions will have benefits for you personally. But our focus as Christians is on the benefits those decisions will have for the Kingdom. In our efforts to follow good financial advice, let’s keep our eyes focused on Christ and our minds focused on how we can serve Him fully.

       The advice we follow may not be all that different from non-Christians. But the motivation, goals, and results should be very, very different. And that difference will serve as a witness for the power of God’s love working in our lives.

       What do you think makes Christian personal finance different? Let me know in the comments!

Related Articles at Provident Planning:

1. Show Me in the Scriptures…
2. Debt Is Not Evil
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4. God’s Purpose for Christian Prosperity

1. We don’t want to deal with thoughts of our own death. Writing a will makes some people feel like they’re planning to die. But this shouldn’t keep you from doing something that’s good for you and your loved ones. You’re going to die someday. Get over it and get a will.

 

2. We think we can’t afford it. Everyone knows attorneys don’t come cheap. It’s not uncommon to find attorneys who charge $250/hour or more for their work. A complete estate plan can run anywhere from $500 to $5000 or more depending on who you use. But there are alternatives – and that’s what this article is about.

Do Your Own Will

       The cheapest way to get a will is to do it yourself. But the problem is you can easily make mistakes that will invalidate your will – making it completely useless. Or worse, you could end up writing a will that goes against your wishes without realizing it. And if you’re in Louisiana, you shouldn’t even consider doing estate planning without an attorney (they have some strange laws there).

       But if you’re willing to do some research, carefully consider your decisions, and follow instructions exactly, then making your own will can be a viable alternative to using an attorney. Obviously, the preferred method is to use an experienced estate planning attorney, but if the cost is keeping you from making a will at all then going the do-it-yourself route can cover you until you can afford to pay an attorney.

       Luckily, there are some good resources out there to help you make your own will. One website I found, DoYourOwnWill, has a helpful questionnaire with guidance and detailed instructions on how to properly execute (sign and put into effect) your will. If you’re married, you should do this with your spouse and discuss all the questions together.

       Please note I’m not endorsing this as the best solution and I’m not giving you legal advice. I’m not an attorney and using DoYourOwnWill is not a substitute for an attorney. But if you don’t have a will and you’re not going to get a will because of the cost, this is better than nothing.

       You’ll also find several other free estate planning documents like living wills and powers of attorney. Again, they’re still not a substitute for an attorney and you can make some major mistakes by doing it yourself – but if cost is a problem these are free solutions. Additionally, there are inexpensive estate documents you can purchase online through legalzoom.com or nolo.com. You could also look into software like Quicken WillMaker.

Hire an Experienced Attorney As Soon As Possible

       If you decide to make your own will or use other free estate planning documents, please hire an attorney as soon as you can afford it. An experienced estate planning attorney can help you avoid costly mistakes and carefully consider all the decisions you must make. Make sure you shop around. Don’t settle for the first quote you get. Talk to several attorneys, stick with the ones who specialize in estate planning, and ask for referrals from your family and friends. You may also be able to get a good referral from your accountant, financial planner, real estate agent, or banker. The most expensive attorney is not necessarily the best, but do your research before you go with the cheapest option.

       Do you already have your estate documents? If so, how did you get them? If not, what are you going to do? Let me know in the comments!

Related Articles at Provident Planning:

1. Estate Planning: Which Estate Documents Do You Need?
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