Estate Planning for New Parents
Bringing a new baby into the world is one of the most exciting and potentially anxiety-provoking experiences in life. As a new parent, you naturally want to provide for and protect your baby and his future in every way. For most new parents, thinking about making a Will is the last thing on your mind. Sleepless nights, joyful first smiles, and keeping up with the laundry are much more at the forefront of your thoughts. Yet having a new baby can also leave some parents feeling like they want to take all steps necessary to make sure their child is protected from any foreseeable or unforeseeable harm. The following are some important things all new parents should know about Estate Planning with minor children.
Naming a Guardian Could be the Most Important Part of Your Will.
If both parents were to pass away, the most pressing issue to be addressed is who will take care of your children. In North and South Carolina, your Will is the instrument you use to name guardians for your minor children. If you have not named a guardian in your Will, the courts will decide who will assume responsibility for your child’s care. The guardian the court picks may not be the person you would have chosen. The court may pick that family member that “looks good on paper,” but is definitely not the family member you would have chosen to raise your child.
Additionally, if you have not named guardians in your will, the potential guardians will be subjected to court hearings, lengthy delays and costs of the court process, and invasive home studies prior to the court awarding them guardianship. Your children may live in uncertainty for a period of time not knowing where their new permanent home will be.
To make matters worse, your family could potentially end up in a costly, drawn-out custody battle over the welfare of your children. In the end, a judge who never met you, and likely will never meet your children will decide who will raise your children.
Minor Children Cannot Directly Inherit Property.
If a child is under the age of 18 he cannot directly inherit property. If you don’t have a Will with the proper provisions for creating a Minor’s Trust for your child, then the court will appoint a conservator who will manage any inheritance your child receives until your child reaches the age of 18.
The conservator may be a financial institution, potentially your ex-spouse, a relative you may not have chosen to handle your children’s finances, or another person you may not know or trust. This conservator will control all of your child’s inheritance until your child’s 18th birthday. When your child is 18, he or she then gets a check for the remaining amount of their inheritance, no matter how immature they might be, or what lifestyle they may be living. Most parents would prefer for their children to be a little older and more mature before receiving their entire inheritance.
Sadly, there are people out there watching the public records for when 18-year olds receive inheritance checks. These same people are happy to help those kids spend their new money.
When planning for your baby’s long-term protection and welfare, there should be no shortcuts. At Simpson Law Firm, we understand that your children are your greatest asset, and are in need of the most protection. Let us help you create a dependable plan today to ensure your kids are taken care of tomorrow. To schedule your estate planning consultation, please call us at 803-764-9555, or email us at Melissa@hollysimpsonlawfirm.com.
