Why Expanding the Family Should Trigger an Estate Plan Review

The birth or adoption of a baby is a life changing time in your life. If you are becoming a first-time parent, it can also be a chaotic time as you try to plan for all of the changes to come. Creating or reviewing an estate plan is likely not something at the top of your list of priorities; however, whether you realize it or not, expanding the family should trigger an estate plan review.If you do not already have a comprehensive estate plan in place, you are not alone – over half of all Americans have yet to create an estate plan, despite knowing how important it is to have one. If you have yet to create yours, now is the time to do it. If you already have one in place, now is the time to review it. Why is it so important to create or review an estate plan when you are expecting a child? The answer is simple – a baby changes everything.

The primary goal of most estates plans is to provide for loved ones in the event of death or incapacity. Prior to becoming a parent, that likely meant providing for a spouse and possibly a handful of other relatives to a lesser extent. When you have a child, the focus of your estate plan shifts from providing for a spouse to providing for a child. Of course, you may still leave the majority of your estate to your spouse since he/she will be taking care of your child; however, provisions will need to be made for the possibility that both of you could be taken away from your child at the same time. A guardian will need to be nominated in your Last Will and Testament and, most likely, a trust created to protect and manage your assets for your child until he/she reaches the age of majority.

You may also decide to focus more on ensuring that sufficient assets are available to provide for your child in the event of your death. Life insurance will likely become a larger part of your estate plan. In addition, you may decide to start saving for the future, given the high cost of higher education, by creating an education trust. Finally, don’t forget to execute a Power of Attorney for anyone who will care for your child in the unlikely event that your child needs medical care at some point and you are unable to get there in time to consent to that care.

If you need to get started on your estate plan, or wish to review and update an existing plan, contact the experienced New York estate planning attorneys at The Law Offices of Kobrick & Moccia,  by calling 800-295-1917 to schedule your appointment.