Bringing a new child into your family is a joyful milestone. Whether it’s your first baby or you’re growing your crew, this exciting life change comes with new responsibilities—and that includes taking a fresh look at your estate plan.
It’s not just about money or legal documents. It’s about protecting your child, making intentional decisions, and ensuring peace of mind for your family’s future. Here’s what you should know:
1. Naming a Guardian Is One of the Most Important Decisions You’ll Make
If something were to happen to you (and your child’s other parent), who would raise your child?
Without a legal guardian named in your estate plan, the decision could be left up to the court. While judges do their best to act in the child’s interest, they don’t know your values, your family dynamics, or who you would truly want in that role.
By naming a guardian in your estate plan, you make that choice—clearly and legally.
2. A Trust Can Protect and Manage Inheritance for Your Child
Children can’t legally inherit assets until they reach adulthood. If you haven’t planned, the court may appoint someone to manage your child’s inheritance, and those funds will typically be turned over to them in full when they turn 18.
A thoughtfully created trust lets you:
- Choose who will manage the funds
- Decide when and how your child receives money
- Set guidelines for education, healthcare, and life expenses
- Add protection from future creditors or divorce
This isn’t just about wealth—it’s about stability and guidance.
3. Update Beneficiaries and Account Titles
One of the most overlooked steps after having a child is updating beneficiaries on retirement accounts, life insurance, and pay-on-death accounts. It’s important that these designations align with your estate plan—especially if you’re using a trust.
If your child is a minor and listed directly as a beneficiary, it could create legal complications or delays.
A coordinated plan ensures your wishes are carried out seamlessly, without court interference.
4. Don’t Forget Temporary Guardianship
Traveling without your child? Leaving them with a grandparent or nanny? If something happens while you’re away, who has legal authority to make decisions?
A temporary guardianship form gives someone you trust the legal ability to care for your child in the short term. It’s a simple but powerful tool many families overlook.
5. Your Estate Plan Should Grow with Your Family
Your plan should be as dynamic as your life. As your child grows, your plan may shift—from adjusting guardianship to modifying the trust terms to eventually involving your child in the planning process.
The most effective estate plans aren’t set in stone—they evolve with you.
Final Thoughts: Planning Is an Act of Love
Taking the time to create or update your estate plan isn’t just a legal task—it’s a heartfelt one. It’s a way of saying, “I’m thinking ahead, so my child is safe no matter what.”
If you’ve recently welcomed a new child or haven’t yet updated your plan to reflect your growing family, we’d be honored to help. It’s never too early to get started—and always better to be prepared.
