Estate Planning Essentials When You Have a New Baby

Welcoming a new baby into the family is one of life’s most exciting occasions, but there’s also a lot to think about! Amidst all the excitement and flurry of activity that comes with a new addition, it’s easy for parents to overlook important matters like estate planning. 

While it may not be the most glamorous aspect of parenthood to consider, ensuring that your estate plan is up-to-date and comprehensive is crucial for the well-being and security of your growing family.

7 Estate Planning Steps After Having a Baby

Here are some essential steps to take when updating your estate plan after the arrival of a new baby. Don’t worry if you can’t get to them right away—these are just food for thought as you enter this new chapter of your life. 

1. Create or Update Your Will

If you haven’t already done so, now is the time to create a will or update your existing one to include provisions for your new child. Your will should designate a guardian for your child in the event that both parents pass away before the child reaches adulthood. This is perhaps the most important decision you’ll make in your estate planning process, so it’s essential to carefully consider who would be the best fit to care for your child.

2. Establish a Trust

You might want to establish a trust for your child, allowing them to oversee and allocate assets. This trust can offer financial assistance for their education, healthcare, and other necessities, all while ensuring responsible management of the assets until they reach a specific age or milestone.

3. Designate Beneficiaries

Review and update the beneficiaries listed on your life insurance policies, retirement accounts, and any other assets that pass outside of probate. Make sure to include your new child as a beneficiary, and consider establishing contingent beneficiaries in case your primary beneficiaries predecease you.

4. Consider Life Insurance

With the added responsibility of a new child, it’s wise to review your life insurance coverage to ensure that it adequately provides for your family’s financial needs in the event of your death. Life insurance can help replace lost income, pay off debts, and provide for your child’s future expenses.

5. Plan for Incapacity

Estate planning encompasses not only posthumous considerations but also includes provisions for potential incapacity. Designate someone you trust to make financial and healthcare decisions on your behalf through powers of attorney and healthcare directives.

6. Document Your Wishes

Communicate your wishes to your loved ones and make sure they know where to find important documents such as your will, trust documents, and insurance policies. Having open and honest conversations about your estate plan can help prevent misunderstandings and conflicts down the road.

7. Regularly Review and Update Your Plan

Life is constantly changing, and so should your estate plan. Make it a priority to review and update your plan regularly, especially after major life events such as the birth of a child, marriage, divorce, or the acquisition of significant assets.

Bonus: Discuss Your Estate Planning With Our Experts

Estate planning can be a complicated process, and the arrival of a new baby can add an extra layer of complexity. If you’re not sure where to start, our expert Estate Planning Attorneys are always available to discuss your specific needs and help prepare your estate planning documents. We’ll help you make the right decisions for you and your family, ensuring your newest family member is well-protected for whatever the future may hold. 

Don’t leave anything to chance—get started today with a free consultation from LPEP. 

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.