Estate Planning for Georgia Parents | Protect Your Kids
Estate planning for parents in Georgia: How to protect your kids
If something happened to you tomorrow, would your kids be okay?
It’s a question most parents don’t want to think about, but it’s also one of the most important questions to answer early. And yet the vast majority of adults (nearly 7 in 10) don’t have an estate plan at all.
In Georgia, estate planning isn’t just about dividing up assets or worrying about taxes. If you’re a parent, it’s about making sure your children are protected and cared for if you can’t be there to do it yourself.
Estate planning isn’t just for seniors or the ultra-wealthy. If you have kids, you have something to protect. Here’s what every Georgia parent needs to know about creating an estate plan that puts your children first.
The 3 most important estate planning tools for parents
If you’re not sure where to start, these are the three core estate planning components every Georgia parent should have in place.
#1: Name a guardian
This is the person who would step in and raise your children if something were to happen to you. Legal guardianship is one of the most personal, emotional decisions you’ll ever make—and one of the most important.
If you don’t name a legal guardian in writing, a Georgia court will. That means a judge who doesn’t know your family could end up deciding who raises your kids. Prevent this scenario by proactively naming a guardian in your estate plan.
#2: Create a revocable living trust
For parents, deciding on a trust vs a will can feel complex, but it doesn’t have to be an either/or decision. A revocable living trust lets you leave money, property, or life insurance proceeds to your children without sending it through probate or handing it over in a lump sum at age 18. You choose a trusted adult (the “trustee”) to manage the funds, and you get to decide how and when your child receives support. This might mean monthly distributions for living expenses, or larger disbursements for college or buying a home.
#3: Set up healthcare directives and power of attorney
This part of your plan is for you. If you’re temporarily incapacitated due to an illness, accident, or medical emergency, someone you trust should have the legal authority to make decisions and access funds. Without these documents, your family could be forced to go to court just to handle your basic care.
What happens to your kids without an estate plan in Georgia?
No one likes to dwell on the worst-case scenario. But here’s what could happen in Georgia if you don’t have an estate plan:
- The court chooses your child’s guardian. Even if your family agrees on the best person to assume responsibility, a judge still has to make that designation official.
- Your assets go through probate. This could mean months or even years of delays before anyone can access funds to support your kids.
- Minors can’t inherit directly. If you leave money to a child under 18, it can trigger a court-managed conservatorship, which can be time-consuming and expensive. Depending on the circumstances, ex-spouses or estranged relatives may gain control of your assets.
Why a trust is better than a will for parents
Even if you already have a will, a trust offers added protection and flexibility ideal for families with children. Here’s what a trust can do that a will can’t:
- Avoid lump-sum inheritance at age 18. Most 18-year-olds aren’t ready to manage a large sum of money. A trust helps manage the assets on your child’s behalf and protects them from predators, scams, and poor financial advice.
- Allow gradual distributions. The terms of a trust let you set conditions based on age, milestones (like college or buying a home), or specific needs to provide your children with long-term support.
- Safeguard assets from creditors or legal claims. An unprotected inheritance could be seized if your child is sued or goes into debt. A trust helps shield your assets from this type of exposure.
- Keep your financial wishes private. Trusts keep your estate out of probate (which is a public process) and help distribute your assets more efficiently.
- Include life insurance or real estate. You can place key assets in the trust to ensure a seamless transition after you’re gone, without fear of legal delays.
Planning for special situations
Every family is unique. That’s why your estate plan should reflect your family circumstances, not a cookie-cutter template.
Single parents
If you’re parenting solo, naming a guardian and setting up a trust becomes even more important. You may also want to assign a backup guardian in case your first choice is unable to serve.
Children with special needs
A Special Needs Trust can help ensure your child is supported without jeopardizing access to important government benefits.
Divorced or blended families
If your child has more than one household, it’s important to be clear about who manages what and how assets should be handled across families. A solid plan can prevent conflict and protect your child’s best interests.
When is the right time to create an estate plan?
It’s a common misconception that estate planning is something you should only create when you’re retired or ultra-wealthy. But the truth is: if you have children, you already have something important to protect.
Many parents feel the urgency start to build when their child is around age 4 or 5 and entering school, or when their second child is born. For many parents, that’s when the world starts to feel a bit bigger, and the what-ifs start to feel more real. Other common triggers include a divorce, remarriage, inheritance, or home purchase.
There’s no perfect time to create your estate plan—but as a general rule, earlier is always better. You can update your plan as life changes with something like a revocable living trust, but putting a plan in place now will ensure your family has the security they need.
Frequently asked questions for parents creating an estate plan in Georgia
Who should I name as a guardian for my kids?
Choosing someone to care for your children after you’re gone is a highly emotional and personal process. Think of someone you trust to raise your kids with your values and lifestyle, and make sure to have a conversation with them in advance to confirm their willingness.
What happens if I don’t have a will in Georgia?
Without a clear estate plan or will, your estate goes through intestate probate. A judge will decide who raises your children and how your assets are distributed.
Should I leave money directly to my kids?
I don’t recommend doing this without a trust. Minors can’t inherit outright, and a trust lets you provide your kids with support on your terms, managed by a trusted person you choose.
What is the biggest mistake parents make when setting up a trust fund?
The biggest mistake parents make when setting up a trust is failing to fund the trust after creating it. Think of it like opening a bank account, but never depositing any money. Without any dedicated assets, the trust can’t do its job. Unfortunately, this is just one of a few trust-related mistakes that can undermine your best intentions for your kids. Here are a few other trust mistakes parents should avoid.
What is a revocable trust, and do I need one?
A revocable living trust is a flexible tool that lets you manage your assets during your lifetime. If you wish, you can make changes to this plan until your death. For parents, this type of trust can prevent delays and better protect your kids.
Can my ex-spouse control what I leave to my children?
Possibly, if there’s no plan in place. A trust lets you choose a trustee (who may or may not be your ex, depending on your wishes) to manage your assets on your child’s behalf.
If you’re a parent in Georgia, now is the right time to create a plan that protects your children no matter what life brings. Schedule a strategy session to start your personalized estate plan today.
