ESTATE: THE IMPORTANCE OF A GUARDIAN- Excerpts of the book "Finance for dad"

Why is it important that parents plan their Estate before having their first child?

Most parents are not aware of what I’m going to tell you now. Analyze it and think whether it’s important or not. The transition stage between childhood and youth is the most fragile for you. If your parents weren’t around, your situation would be very difficult. Someone would have to take care of you, maybe your grandparents or your aunt and uncle. However, they would really appreciate an additional backup, someone that has enough resources and that has planned to do this. This person should be your godparent or your guardian.

How important is a guardian during the first stage?

You need a good guardian. A person who plays the role of a godparent and that is able to be your tutor. Not someone who takes the role lightly, but someone who has all that it takes to be your guardian/godparent/tutor. To define guardian/godparent/tutor in terms of finance, let’s use a couple meanings from the dictionary:

“A person that protects another or helps him/her to succeed.” “One who has, or is legally appointed to, the care and management of another, usually a minor.”

What are the characteristics of a good guardian?

Guardian/tutor, or better yet, godparents since in some cultures it’s commonly a couple, must have certain characteristics.

Committed to you. Your guardians must always be on your parent’s best friends list. They will be willing to be your tutor when needed. Your parents must talk to them and emphasize how important it is to be a combination of guardian/godparent/tutor. They might feel a little scared since it’s a lot of responsibility. There’s one way to balance this - they will be your guardians and your parents will do the same for their children.

Young people. Guardians must be young enough so that they can perform their role as substitute parents until you can take care of yourself.

Economically reliable. They must be economically solvent. One of the main tasks as a guardian is to provide economic if you need it. Thus, it is better if they have good solvency. An additional quality, which is implied in the previous one, is their ability to manage finances. Your parents will probably leave you an insurance plan or other assets that must be well managed for your own benefit.

Is grandpa or any close relative a good guardian?

Definitely NOT! In the first place, close relatives have a blood-related responsibility. You can be sure of this resource. In the last case, one of them could be in charge of your upbringing, in case you can’t rely on your parents. The guardian or godparents seem to be an important additional back up. Grandparents? There’s no way! Besides, they already have some blood related responsibility with you and also age is a great obstacle. I know it’s hard to say “no” to your grandparents, particularly in Hispanic cultures, but you must put your foot down on this.