This also caused a bit of tension in my family, but thankfully not for long.
we chose my mom as Emily's legal gaurdian after dh and I had a lengthy discussion about this. His parents were obviously not thrilled. We chose her for a number of reasons:
1) She looks after Emily and will continue to look after her in the afternoons even when she goes to school as I never want her to spend full days away from home. So, she is already very attached to my mom.
2) My mom does not have any other responsibilities really - she is single and my youngest brother is 22 at the moment so it's not as if she has anyone else to consider.
3) My mom would be able and willing to pack up and move into our home if anything happened to dh and I. We would make sure that the financially she is able to support herself and Emily and Emily would not need to be uprouted to another home, school, etc.
4) I was very adamant that if anything happened to both dh and I, I did not want Emily or any other children of mine to become part of another family. i.e go to someone who has children of their own. Some people might feel that this is better for the kids, I just feel that if anything had happened to my mom while we were young, I would not want to be forced to be part of another family and have to fit in with their way of doing things.
5) My mom is youngish (52), so she will hopefully be around for a while to come. She is also a young 52 so much so that JULZ's dh thought she was my sister when he met her
But, I agree, definitely a hard decision to make and not something that one wants to think about. But, the sooner you make the decision and sort of "forget about it", the better.