Update: Jackson Did Draft a Will, Have You?

(MoneyWatch)  As a parent I feel relieved to learn that Michael Jackson did draft a will and name a guardian. And it turns out that he wanted his mother, Katherine Jackson, to have custody of the kids. This makes life so much easier for the pop icon's children since their grandmother was already granted temporary guardianship by a judge on Monday. Now MJ's little ones can grieve without worrying about where they will be living six months from now.

Would your children be so fortunate? The reality is that the majority of parents with small children don't have wills and have not named guardians for their children in the unfortunate event that mom and dad can no longer care for their little ones.

Whenever I chat with young parents I find their eyes start to glaze over when I discuss the importance of estate planning. They would rather talk about how much they'll spend on diapers during a baby's first year or what type of savings vehicle they should use for setting aside money for college.

Sure, diapers and a college education are pricey. But what could be more important that deciding who will care for your infant should anything happen to you and your partner? What many people don't realize is that drafting a will is the only legal way to name a guardian for your children. Without this document, a judge decides who will care for your kids if you're not around. While you may have once told your sister that you really want your little princess to move in with her should you pass away, a judge has no way to verify that the conversation actually took place.

Also, you don't have to be famous or rich to have relatives fight for custody of your kids. It wouldn't be unheard of for both sets of grandparents to argue in court over who would make better guardians. And, once again, it will be up to a judge to decide who is best suited for the role. Unfortunately, that decision may not be the same one you would have made.

If the only thing stopping you from drafting a will is a lawyer's fee, you can save money by using a software program like Quicken WillMaker. While I have to admit I'm partial to lawyers and used one to draft my own estate plan, I would rather see parents go the cheaper route rather than put off the task.

After all, the only thing I can imagine as more traumatic for children than losing their parents is to also not know who is going to take care of them.

If you want some tips on how to choose a guardian, you may want to check out my new book The Wall Street Journal. Financial Guidebook for New Parents.

Michael Jackson image by CainandToddBenson, CC 2.0.