One of the most frequent estate planning questions I am asked comes from parents who are expecting a baby in a few months. The question is: “Should we do an estate plan now or after the baby is born?” It is an excellent question, and the answer involves estate planning matters all expecting parents should consider.
Having a Will Is Essential
First, every person should have a will. If you do not have a will and you are expecting parents, you now have additional motivation. True, your child is not born yet, but language can be used in the will that will include your child, even if unborn, such as “all children of our marriage born after the date of execution of this, my Last Will and Testament.”
If you have a will or living trust, see if it refers to any unnamed children in this way. If it does, you are technically covered. However, if your family situation has changed since you drafted your documents (such as purchasing a house, having a higher net worth, or moving to another state), or if no children are named, this is a good time to do a new will or living trust.
Have Your Will Updated
You could also opt to simply have your existing will revised with a codicil to include your new child after birth. However, word processing makes it easy to change wills so codicils have become much less common. Doing a new will to include your baby should be a little more expensive than a codicil.
So, if you are expecting, you need to do a will or to make sure your current estate planning documents cover future children. Here are some estate planning considerations your new or updated will should cover:
- If something happens to you both, who will be the child’s guardian?
- If something happens to you both, will the guardian or another person make financial decisions regarding the child’s inherited assets?
- Do you want to set up a trust for the child?
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- If you don’t want the child to get the money outright at age 18 or 21, what age is appropriate?
- Do any relatives named guardians need to change their estate plans?
- Do you have a Living Will, Health Care Power of Attorney, and General Durable Power of Attorney to deal with unforeseen medical emergencies during the pregnancy or the birth of the child?
Final Thoughts
Whether or not you are expecting, tragedy can strike anytime. All of us, even young expecting adults, need to do estate planning. An estate planning attorney will put the documents in place to protect your unborn children so that they will be cared for and protected if you become disabled or die.
For more information about estate planning, probate, or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate, or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526). David H. Lefton is an Estate Planning and Probate Attorney. He is a partner in the law firm of Barron, Peck, Bennie & Schlemmer.