Expanding Your Estate for a New Arrival: A Guide to Estate Planning When Having a Baby

Congratulations on the upcoming addition to your family!

As you eagerly await the arrival of your little one, it’s an opportune moment to reflect on how this joyous change impacts every aspect of your life, including the need to update or initiate your Estate Planning.

Much like embarking on a new marriage, moving homes, or changing cities, the arrival of a baby introduces a myriad of new considerations and responsibilities.

Let’s dive into how you can ensure your expanding family is protected and secure, focusing on the crucial steps of Estate Planning during this significant life event.

Updating Your Will and Guardianship

One of the first things you have to decide is who the child’s guardian will be. This is the first step to making sure their future is secure. You have to see that the baby is cared for in the event of your demise, which means leaving money for them and making sure your property passes on to them properly.

It’s important to choose a guardian because otherwise, the courts assign them, which could be someone you don’t agree with. Spend time with your close ones and consider who would be a good guardian, and always ask them if they’re willing to take that responsibility.

Setting Up Trusts For Children

For the money you leave your child, you can turn to a Trust. The assets you leave will be looked after by the trustees you choose. Make sure you choose someone who would make the best decisions for your child with honesty and wisdom.

Setting up a Trust is a great way to help your children and secure their future. With guidance from Estate Planning specialists, you can set up a trust with specific terms for your particular situation and needs and achieve these goals.

The types of Trust you can set up include:

  • Irrevocable Trusts: Once set up, these cannot be changed without the beneficiary’s permission. This can be a good way to ensure your child gets what you intend.
  • Revocable Trusts: This is a living trust created to protect assets and decide beneficiaries. These can be altered in your life.
  • Totten Trusts: This is when the beneficiary receives the assets directly when the grantor passes away. These funds can be altered and withdrawn in the grantor’s life and the beneficiary can also be changed by them.
  • Spendthrift Trusts: These protect the assets from an irresponsible beneficiary as the assets belong to the trust, and the beneficiary does not have direct access and the grantor has control over how the beneficiary can spend the money.

You can learn more about these and other types of trusts by contacting our team of experts and making an Estate Plan tailored to your needs. Together we can find the best plan for you during the big life change.

Insurance and Financial Planning

Finally, it’s important to have the right life insurance and ensure that it provides cover for your entire family as it grows. If you didn’t update or get insurance when you got married, this would be the second best time to do it. Reconsider the coverage amounts of your current insurance and make sure the updated one will be able to provide support for the entire family.

While making all these decisions for the child’s immediate care, it is also a good idea to consider financial planning for the child’s future. This can be in the form of college savings so that when they are all grown up, they don’t have to worry about student debt. You can also use this time to create a new budget plan for your family to include these new savings you need, along with the incoming expenses. 

Understandably, this might all seem a bit complex and, at times, confusing. This is why we’re here to help you simplify your Estate Planning process.

When It Comes to Estate Planning, the Earlier, the Better!

While Estate Planning is a proactive measure that might not always be top of mind amid the excitement and busyness of welcoming a new baby, it’s a crucial step in safeguarding your family’s future. We understand the complexities and time constraints of modern life and are here to offer guidance and support. 

Contact us today to secure your baby’s future, allowing you to cherish the present moments with peace of mind.