My FOURTH post in my series for all my new, or soon-to-be, parents and grandparents.
This is the last on the information I have for the “planning” phase. That is the “pre-baby” to-do-list.
Wills, Powers of Attorney & Parental Guardianship
As you prepare for the arrival of your new little one, you’ll want to be sure you get your Estate Plan updated. Never done an Estate Plan? Don’t worry, now is the perfect time for your first one!
In a nutshell, getting your Estate’s affairs in order is a key step in preparing for a child. The goal is to plan for the worst, so that if there was an emergency, all plans are ready and in place.
It is my opinion that ANY parent should have a Will. What I mean is that in the cases of same sex parenting, when there is intention of legal adoption OR second marriages, I advise you create a Will and the other Documentation I’m listing below.
To clear up one point, I’d always advise legally adopting, early on, if you intend to keep a child in your life. It’s a small step to ensure a long term relationship for you and your child. Anyways, this topic is for another day!
Getting these plans setup are not the most exciting things to attend to, but I can tell you that all my clients feel a sense of relief once they have completed this important planning process. It gives them a sense of ease knowing that everything is in place if anything were to happen.
You’ll want to either; have your Last Will and Testament reviewed, create a new one, or have your first one drawn up. With a new child on the way, you’re going to want to make sure that your Will reflects your intentions given this new life change. Information you had previously included may no longer apply or be insufficient given your new addition. Below provides some specific information on adjustments that are likely needed.
The first topic is Guardianship. It’s one that my clients usually try to avoid, but is so critically important.
Your Will needs to explicitly layout who you would assign as Parental Guardians. Your Will can be structured to give Guardianship to your Spouse first with a back-up plan in case something was to happen to both of you. I know what your going to ask, do you need a ‘back-up’? My answer to my clients is always YES. As uncomfortable as it is, it is very crucial. The goal of these documents is to ensure your children are taken care of the way you want. You need to assign a back-up to achieve this goal.
That being said, this choice is an important one and should not be taken lightly. My clients often look to me for guidance on who might be best to pick. They usually have 2-3 names of individuals and can’t decided on exactly who would be best. I always advise them to pick individuals who have similar morals to them, people will love your children like their own, and individuals who will be able to afford raising their children either on their own or with monies provided by them. I advise them that it is not the time to worry about hurt feelings, and that they should do what’s best for them and their children.
On to the topic of money/assets.
Your Will needs to also address any monies or assets to be left. In the context that we are discussing, specifically you’ll want to allow for monies to care for your child in case of your passing. You’d also want to think about if you have specific stipulation on how that money is to be used. I have clients who will come to me and say, I want my children’s guardian, to be my sister, but she is terrible with money and I’m afraid that if I leave her all my money, she will spend it in the first 2 years and my children will have nothing left. This is a very real concern. In a situation like this, you can discuss some options on payments or it might be best we create a provision for a Trust if your children are under a specific age (often 18) before you pass.
It is always my advice that the addition of a new child is the time to revisit your Will or create one!
In addition to your Will, you’ll want to ensure you have some of the other important Estate Planning Documents revisited or setup. It is important that you have both a Financial and Health Care Power of Attorney, and in my opinion, it’s best to have Health Care Directives (also know as a Living Will).
These documents are critically important to governing your affairs if you are unable to make medical and financial decisions, even temporarily. It’s important to have these documents drawn up to ensure your affairs continue to run smoothly, in case of an emergency. These documents are not only important for the immediate event of child birth, but also critically important for the future.
There are lots of scenarios, in life, that could render you temporarily incapable of making important decisions. Any extended stay in a hospital can wreak havoc with your finances; now imagine throwing a child into the mix and all of the daily and monthly expenses that a child needs, not being covered.
To learn more about these important topics you can check out my series from last year here:
Powers of Attorney:
https://www.facebook.com/dcravenlaw/photos/a.576744079148860.1073741829.576722492484352/668717119951555/?type=3&theater
https://www.facebook.com/dcravenlaw/posts/680673798755887:0
In preparation for your new little one, it’s critically important your get your Estate Planning ‘house in order’ as they say.
If you need help in RI or MA, I’m happy to be of service. This is one of the area’s of law I am most passionate about. For more, check out my website: www.dcravenlaw.com
The next portion of this series will be dedicated to when your baby arrives. That is legal information on; Birth Certificate, Social Security Number, Health Insurance, and Rights to Nurse.
