Preparations For The Expecting

Expecting parents or parents of newly born children might want to consider the following estate planning steps to secure the future care of their child:

• First, a couple might want to consider purchasing life insurance to provide support for their children or each other should one of the spouses die unexpectedly.
• Second, a couple might want to consider the tax advantages associated with gifting portions of their estate to their children. If a person does this correctly, it could reduce a person’s estate tax.
• Third, parents might want to consider setting up a trust for their children. A couple could use a trust to effectively establish a payment plan to provide support for their children throughout the course of their lifetime. It helps ensure that the child’s inheritance will not be squandered. 
• Fourth, parents might want to ensure that they have selected a guardian for their children should they die unexpectedly.
• Finally and probably most importantly, parents might want to consider updating their will or creating a will to reflect their new addition to the family.

See Larry Bodine, Choosing a Name and a Lawyer For Your Baby, Lawyers.com, May 14, 2012. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.