Expecting parents should protect their children through estate planning.

Those who are expecting their first child are often overwhelmed with emotions.

Preparations like sharing the news with loved ones, choosing a name, and creating a registry are accompanied by joy and excitement.

Thinking about the future of your child if something were to happen to you or your spouse often triggers feelings of dread.

As a result, many new parents avoid estate planning to reduce these negative thoughts and emotions.

Unfortunately, avoiding it can lead to lengthy probate proceedings and the court having the authority over your child's future.

Yikes!

Expecting parents can reduce anxiety about the future by creating a comprehensive estate plan.

What Is Estate Planning?

The estate planning process requires people to organize their affairs to ensure their assets are managed and distributed according to their wishes.

The process typically involves creating a last will and testament, powers of attorney for health care and financial decisions, and considering whether to incorporate a trust to administer the inheritance.

According to an Experian article titled "How to Plan Your Estate as a New Parent - Experian, "legal complications, higher taxes, and creditor issues often arise when people neglect estate planning.

What If Expecting Parents Do Not Have a Will?

Those who die without a last will are considered intestate.

What does this mean?

In practice, the courts will distribute assets according to state laws, and a judge will select a guardian for your minor children.

Some relative you never speak to or with vastly different values could end up rearing your child!

With an estate plan in place, expecting parents can better secure their child's future.

What Should Be Included in an Estate Plan?

Last Will and Testament

The most fundamental estate planning document is a last will.

With this document, expecting parents can name a guardian for their child, select an executor of the estate, and choose the beneficiaries of their assets.

Powers of Attorney

Powers of attorney are essential to prepare for incapacity.

For a comprehensive estate plan, you should have both a general durable power of attorney for financial matters and a durable power of attorney for health care decisions.

Through the legal documents, the persons you trust most can manage your property and finances and make medical decisions on your behalf.

When Is the Best Time for Expecting Parents to Start Estate Planning?

Expecting parents should not wait to begin estate planning.

Now is the best time to take action.

By waiting until the baby is born, you may incur greater risks and consequences from adverse life events.

In addition to estate planning, expecting parents should engage in financial planning by contributing to health savings accounts, setting up automatic savings, and building an emergency fund.

These simple steps create a smoother transition to parenthood and allow you to make informed decisions.

Highlighting a Real-Life Story

Joyce Marter, a financial therapist and author, discusses her experiences as an expectant mother in a NY Post article titled "Savvy expecting parents need to start financial planning now. "

While pregnant, Joyce was living paycheck to paycheck and navigating student loan payments.

By establishing a financial plan, she was able to contribute to a health savings account, build an emergency fund, and avoid unnecessary items for her baby registry.

Such actions allowed her to build a financial safety net and minimize stress while pregnant.

Build a Secure Future for Your Child

Creating a secure future for your new baby begins now.

Working with an experienced estate planning attorney can help you predict and provide for your child's future needs should something happen to you.

What are Key Takeaways for Expecting Parents?

Estate planning protects the personal and financial security of your child.

By choosing guardians and executors in a last will, you can ensure you trust the person caring for your child and managing your estate.

Additionally, estate planning and financial planning go hand in hand.

Setting up emergency funds and health savings accounts can help you prepare for surprise expenses.

Working with an experienced estate planning attorney can give you peace of mind in a stressful time of transition.

If you are interested in estate planning to protect and care for your new baby, schedule a consultation with Harvest Law KC.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

References: NY Post (Oct. 18, 2023) "Savvy expecting parents need to start financial planning now" and Experian (Oct. 13, 2020) "How to Plan Your Estate as a New Parent - Experian"