The worst case scenario

What would happen to your kids if you and your spouse suddenly died?

According to a 2007 survey , nearly 75 percent of parents with children under 18 have no will or estate documents. That means they also haven’t named a guardian for them in the event that something tragic were to happen – the death or perhaps severe impairment of both parents.

If you’re divorced and a single parent, it’s likely that your ex would get custody of your kids. But if you’re married and you both pass away, it’s hard to tell what could happen. Without a will, the children can become wards of the state.

“There’s typically no easy mechanism for determining who takes over when the parents of minors die,” wrote personal finance columnist, Liz Pulliam Weston . “Your children could wind up at the center of an ugly court battle, be foisted on a relative who doesn’t want them or be stranded in the foster-care system if nobody steps up in time.”

“The only people who always, without a doubt, need a will are parents of minor kids,” she emphasized.

Many parents can’t bear to think of this worst-case scenario, but it’s something we all have to consider.

Here’s a link to a recent NPR discussion on the subject. It includes a checklist of how to prepare for the worst:

• Pick the person you trust most to be your children’s guardian.
• Make sure this person accepts the responsibility.
• Give the guardian a certified copy of your will.
• When you make your will, also buy life insurance that will replace your income and support your children. Get a policy big enough to fund major future expenses, like college, if they aren’t covered under other savings.

Do you have a will and a designated guardian for your children?