Protecting Estates.
Protecting Legacies.

Ways parents can plan financially to help their kids’ guardians

In California, many parents put their children’s well-being above all else. That is one reason they designate guardians during estate planning.

Another important aspect is financial planning in case guardianship becomes necessary.

Comprehensive emergency fund

Building an emergency fund is a fundamental step in financial planning for unforeseen events. Parents can set aside a portion of their income regularly into a savings account for emergencies. Aim for at least three to six months’ worth of living expenses to ensure financial stability during transitions.

Adequate life insurance coverage

Life insurance provides a financial safety net for children in the event of a parent’s untimely death. Parents should carefully assess their insurance needs and purchase a policy that adequately covers outstanding debts, mortgage payments and future expenses such as education and health care costs for their children.


A will helps to specify guardianship arrangements for minor children. Additionally, parents can establish testamentary trusts in their wills to manage and distribute assets for their children’s benefit.

Custodial accounts for minors

Custodial accounts, such as Uniform Gifts to Minors Act or Uniform Transfers to Minors Act accounts, allow parents to transfer assets to their children while maintaining control until they reach adulthood. Parents or guardians can use these accounts to save and invest funds for future expenses.


Open communication with the guardians makes sure everyone is on the same page. Guardians should understand the financial plans in place and how to implement them.

With a few proactive steps, parents can provide peace of mind and protect their children’s future.

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