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Things to remember about estate planning for an unexpected child

On Behalf of | Jun 19, 2024 | estate planning | 0 comments

Surprises come in many forms – sometimes in the form of having another child years after your other children were born. While a new baby may be a pleasant surprise, it might require you to make significant changes to accommodate the latest member of your family. Your estate plan may be one of the essential things that need changes.

Here are a few essential things you need to remember when you are estate planning for an unexpected child:

Reevaluate your chosen guardians

Having a much younger child might mean that you will need to reevaluate the guardians you previously chose to care for your minor children after your death. This is because the current guardians might not be suitable to care for a child for at least the next 18 years. You might need to choose a younger guardian or one who might be physically fitter.

Think beyond your will

There are some financial assets you will no longer be able to address in your will after your death. This includes life insurance. Your policy will typically require you to identify beneficiaries during issuance. You would have most likely already selected your beneficiaries before your new baby. You might need to revisit your beneficiary designations to ensure the inclusion and protection of your new child.

Consider the financial needs of your new child

Your older children have been fortunate to be around you much longer than your new baby. They may have already enjoyed financial benefits over the years, something the latest addition to your family has yet to experience. Creating a trust could ensure that your new child receives their fair share. The estate plan could designate a trustee to determine the division of funds per child as financial needs arise.

Having a new baby can be exciting for the entire family. One of the most important things you can do for your family’s latest addition is plan your finances promptly so you do not have to worry about things needlessly down the road.