Associate Attorney
Welcoming a new child into your family is exciting and joyous! It also makes you aware of the heavy responsibility that comes with being a new parent, and should make you eager to secure your child’s future through estate planning. At Surprenant & Beneski, P.C., our experienced attorneys understand the importance of taking proactive steps to protect your child’s well-being, both now and in the future.
In this blog, we’ll explore essential estate planning measures every new parent should consider. We will guide you through the process from drafting necessary documents to establishing trusts to discussing the critical nature of updating your estate plan on a regular basis.
Documents You’ll Need To Protect Your New Child
Once you become a parent, you will want to safeguard your child’s future with several key documents:
Last Will and Testament
Your Will specifies how you want your assets distributed and can also be used to appoint a guardian for your child in the event of your death. The potential consequences of naming the person(s) whose care may affect the course of your child’s life cannot be overstated.
Durable Power of Attorney
Your Durable Power of Attorney allows you to name who you want to make legal and financial decisions in the event of your incapacity. When you trust a close individual to manage your financial and legal affairs, if you are out of commission, you are doing so to ensure that your child’s financial needs will be met. Your child’s ability to continue living comfortably in spite of their devastating loss will be largely in the hands of the person you give this position of authority.
Healthcare Directives
Your Advance Directive (also called a Living Will) may not seem directly related to your children, but it can actually play a significant role in how your family functions if you become incapacitated. Your healthcare arrangements will impact the extent of the care you receive.
This is true because your Advance Directive outlines which life-saving measures you want to receive, and your Health Care Proxy designates the person you want to approve or refuse medical treatments if you are unable to speak for yourself. Deciding these matters could define the length of your recovery or mean the difference between life and death, so it may have a huge impact on your child.
Medical Power of Attorney
A Medical Power of Attorney is a document where you designate who can make medical decisions for your child in the event you are unavailable. This document is extremely important to have in place as you may not always be able (whether physically or by proximity) to make medical decisions on behalf of your child. If you are away on vacation, or your child’s school cannot reach you, it is important to ensure that you have a trusted person who can make these important medical decisions on your behalf.
Nominations of Temporary and Permanent Guardian
Nominations of Guardian allow you to name who you would want to take custody of your child in the event something happened to you. Nominations of Temporary Guardian state who can have temporary custody of your child in the event of an emergency. This allows you to name a trusted family member, friend, or loved one who can pick you child up to avoid your child having to stay at a police station or with a state agency, such as Child Protective Services.
Nominations of Permanent Guardian allow you to name who you would like to have permanent legal guardianship of your child in the event of your permanent incapacity, or your passing. It is very important to have this document in place, because if you don’t have this, a Court will get to decide who will be caring for your child, and a Court will likely select whoever is next of kin, which may not align with your wishes for your child.
Designations That May Have To Be Altered
With the arrival of a child, you should review and possibly update the following documents to make certain they take note of your newest family member:
- Beneficiary designations on life insurance policies, retirement accounts, and other financial accounts.
- Guardianship designations for the new child if such a drastic measure becomes necessary, taking into consideration parenting style, values, location, and closeness to your nuclear family.
Trusts That May Be Beneficial
You may also want to establish a trust for the benefit of your new child, particularly if you did so for an older sibling. Establishing trusts can provide additional security and flexibility in managing your child’s inheritance. Surprenant & Beneski, P.C. can assist you by discussing the pros and cons of trusts like those below and can help you decide whether one or more will be helpful to you and your new child:
Revocable Living Trust
A revocable living trust allows you to manage assets during your lifetime and specify how they should be distributed to your child after your death, avoiding probate, and preserving your child’s maximum inheritance.
Irrevocable Life Insurance Trust (ILIT)
An ILIT enables you to manage life insurance proceeds for your child’s benefit and can provide liquidity to cover expenses like education costs.
Special Needs Trust
Whether your child has special needs at birth or develops them over time, this trust ensures the inheritance you leave will provide supplemental resources to enhance their quality of life without losing eligibility for the government benefits they may need.
Reviewing Your Estate Plan Is Important If You Have a New Child
Whether this new child is your first or your fifth, and whether you have children from a previous relationship or not, you will want to protect the health and well-being of all of your entire family. One of our capable, insightful attorneys will assist you by reviewing your estate plan with you on a regular basis and asking you pertinent questions to make sure your plan is current and inclusive.
Contact Surprenant & Beneski’s Skilled Estate Planning Attorneys Now!
As the parent of a new child, it’s time to establish your loved one’s presence in your estate plan as well as in your family photo album. While this blog provides you with an outline of the steps you should take to make certain your child’s future is secure, until you contact our offices and take the appropriate steps, you have not accomplished your goal! Contact us today for the conscientious counsel we are only too happy to provide.
