Estate Planning for New Parents: Safeguarding Your Child’s Future

Written by: Carrell Blanton Ferris

Posted on: June 12, 2024

New Parents with Newborn

Welcoming a newborn into the family is an occasion of immense joy. Estate planning may not be the first thing on the minds of new parents caught up in the whirlwind of diapers, feeding schedules, and sleepless nights. However, the arrival of a new family member makes it imperative to consider how to protect and provide for them, especially in unforeseen circumstances.

For new parents, estate planning goes beyond simply managing wealth; it’s about ensuring security, appointing guardians, and laying out a plan that safeguards a child’s future. It starts with the basics like naming a guardian in your will, someone you trust to raise your child in the event that you cannot. This decision alone can relieve you of a significant worry, but there’s more to consider. You will also want to consider who can take care of your child if you suffer a period of incapacity and nominate a standby guardian. When it comes to your child’s inheritance, you may want to consider setting up a trust to manage assets for your child in a controlled manner, ensuring they’re used for their benefit until they’re mature enough to handle their finances. Trusts offer great flexibility for your loved ones and do not require court intervention or supervision.

If you’re not keen on a trust, you can use specific language in your beneficiary designations to establish custodians for your children’s assets under Virginia’s Uniform Transfer to Minor’s Act (UTMA). By utilizing the UTMA, you can assign a custodian to manage a particular asset until your child reaches a set age of 18, 21, or 25. While UTMA accounts can benefit families, they don’t offer the same level of flexibility or protection as trusts do.

Action Step: The first steps in securing your newborn’s future include creating or updating your will, considering a trust for your child, and reviewing your insurance policies to ensure they’re adequate. Our team is here to guide new parents through the estate planning process, ensuring that your plans are comprehensive and tailored to your unique family situation. Reach out to us to ensure that your new bundle of joy is protected, no matter what the future holds.

Please see below for related blogs to this topic.

Estate Planning for Young Families: Facing the Future Boldly
Have you named a guardian for your children?
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