Sometimes, family planning doesn’t exactly go as planned. This is all too true for parents in California and around the country who discover they are having an unexpected child years after their other children were born. If you find yourself in this situation, much will need to change to prepare for your child. One of those changes will need to be your estate plan.
Think beyond your will
Some financial assets are not addressed in your will after you pass away. One such asset is life insurance. Your policy requires beneficiaries to be designated at the time of issuance. Likely, you would have already identified your beneficiaries before the new baby. An important part of estate planning will include revisiting beneficiary designations to be sure the new child is included and protected,
Determine guardians
Because you now have a much younger child, it may be necessary to reevaluate the guardians you previously chose to care for your minor children after you pass. The current guardians might not be suitable to care for a child for the next eighteen years. Therefore, choosing a guardian for the youngest child, or finding new guardians, could be necessary.
Financial needs of the new child
Because your older children have had the privilege of having you as parents for much longer, they have likely reaped financial benefits over the years which the new addition might not have. Establishing a trust with a designated amount of money could ensure the new child receives their fair share. The estate plan could designate a trustee who will determine how the funds are spent per child as financial needs arise.
One of the most important things to do for your new baby is not to delay necessary financial planning. Making preparations for every possible scenario will go far in creating a safe and happy life for your new addition.