It is a well-documented fact that August and September are peak “baby months,” with more births during those months than the other months. Cold, long nights of winter have something to do with that fact. And if your family will be welcoming a newborn in 2024, or recently did this Fall, I want to talk to you about preparing for that newborn from an estate planning point of view.
When new parents talk about getting ready for their new little one, generally, they think about everything they will need to ensure their new baby is comfortable and safe. That most likely includes everything from the latest in nursery furniture, clothing, diapers, feeding supplies and equipment, and all the gear, such as a stroller, car seat, swing, and more. Recent studies have shown the cost of a newborn can range from $20,000 to $50,000 the first year alone, depending on location and household income.
As many of you know, I’ve been an estate planning attorney for many years, and I have found that many of the most loving and attentive parents overlook what, to me, is one of the MOST CRITICAL things needed when you welcome a new baby into the family.
That is, updating your estate plan to ensure, heaven forbid, that if anything were to happen to you and your partner, there is a plan for the new little one in your absence.
Case in point, Heath Ledger, who died in 2008, had a will, but it was out-of-date and did not include the term “after-born children.” The upshot was that a daughter he had with his unmarried partner was not included in any of his estate planning documents. Effectively cutting her out of his entire $20 million estate, which went to his parents and three sisters, not to his child or her mother. As it turns out, this was not the tragic situation it might have been; the Ledger family decided to “do the right thing” and placed the entire fortune into a trust for Heath’s daughter believing that is what he would have wanted. They were not obligated to do so, and we all know of situations where that wouldn’t have happened.
Don’t rely on your loved ones to “do the right thing.” Nor do you want to put them in the difficult position of arguing with other family members over what is best for the new one.
So you know, I provide a complimentary review of my client’s estate plans every three years to ensure their plans are as up-to-date as possible, but when a life event such as a new baby comes along, I tell them not to wait to make the necessary changes. Life is full of surprises, both good and bad, and no one knows what tomorrow holds. If you will be welcoming a new family member in 2024, put “update estate plan” on your list along with the latest and safest car seat available. Call me if you need to create or update your will and/or estate plan. In fact, it might be better to do that now before the bundle of joy arrives, along with many sleepless nights. You can reach me at 513-399-7526 or visit my website, www.davidlefton.com, to learn more.