When a new child is expected, the need for proper estate planning increases. Setting up a minor trust and/or naming an appropriate guardian in the event of the unfortunate death of the parents are just two of the new considerations to be contemplated.
When a new child is on the way, many things come to mind, including getting the financial and legal house in order. At the Elder and Estate Planning Law Firm of St. Louis, we can help you prepare for the arrival of a new member of the family with estate planning designed to anticipate that addition.
Estate Planning for Expecting Parents: Preparing for Your Growing Family
As you prepare for your baby’s arrival—decorating the nursery, scheduling checkups, and planning showers—don’t forget one of the most important tasks: updating or creating your estate plan. It may not be the most exciting part of your checklist, but it’s one of the most essential.
Bringing a child into the world means taking steps to protect their future, no matter what life brings. A solid estate plan for expecting parents should include:
- Naming a Legal Guardian
Designating a trusted guardian ensures that your child will be cared for by someone you choose if you’re ever unable to do so. This decision deserves thoughtful consideration, as it also touches on financial stewardship. - Updating Your Will
If you already have a will, now is the time to revise it. If not, creating one is crucial. Your will outlines who inherits your assets and who will care for your child. - Essential Legal Documents
Make sure you have foundatinal documents in place, such as a Durable Power of Attorney and Advance Healthcare Directive, which empower someone to make financial or medical decisions on your behalf if you’re incapacitated. - Financial Planning Tools
Consider starting a 529 college savings plan to begin investing in your child’s education early. - Reviewing Insurance Coverage
- Update your life insurance policy to reflect your growing family’s needs.
- Consider adding or adjusting a disability insurance policy for added income protection.
- Ensure your health insurance covers prenatal, delivery, and pediatric care.
Taking care of these decisions before the baby arrives means one less thing on your plate once your hands (and sleep schedule) are full. And when you do manage to squeeze in a babysitter for a night out, wouldn’t you rather enjoy some well-earned relaxation than spend the afternoon in a legal office?
While most documents can be completed relatively quickly, selecting a guardian often takes more reflection. Beyond loving and caring for your child, your chosen guardian should be someone who can also manage any funds set aside for them—whether through a trust-based or will-based plan.
In the whirlwind of preparing for a new baby, don’t underestimate the value of peace of mind. Knowing your family is protected, even in a worst-case scenario, is one of the best ways to rest a little easier—something every new parent needs.
These legal topics are provided to you by the President of QMC, Mark Easley. While QMC does not engage in the practice of law, Mr. Easley has practiced estate planning and elder law for over 30 years and is currently the principal at the Elder and Estate Planning Law Firm of St. Louis.