Why It’s Important to Include Your Unborn Child in Your Estate Plan
Estate planning is all about thinking ahead and safeguarding your future for your loved ones. And when you are expecting a child, the importance of estate planning before your baby is born becomes essential. It’s how you can guarantee your wishes are followed if you become unable to make decisions or after you’re gone. A solid plan helps protect your loved ones and your legacy—but is planning for an unborn child planning too far ahead?
The answer: If you keep it simple and flexible, it may be a smart move.
Planning Ahead Without Overcomplicating Your Estate Plan
When thinking about the importance of estate planning before your baby is born, the key is to plan smart, not just extensively. As a parent who understands the importance of planning for their kids, including them in your estate plan can help make sure they’re protected if something happens unexpectedly.
That said, being too specific or overcomplicating things can backfire. If you reference a child in your estate plan who never ends up existing, your plan could create confusion or even legal headaches that could have been avoidable.
The Pros of Planning Ahead
- Prevent accidental disinheritance. Including language that accounts for future children ensures they’ll be part of your estate if and when they arrive.
- Make guardian decisions early. You’ll have a chance to voice who you want raising your child if something happens to you.
- Peace of mind. You’re covering all your bases, which is never a bad thing when it comes to protecting family.
The Pitfalls of Over-planning
- Outdated plans. If you’re not currently expecting or trying to adopt, detailed plans for future kids might not age well.
- It can make your estate harder to manage. The more “what ifs” you include, the more complicated it can be for your executor or trustee to carry out your wishes.
The Reality: Many Americans Don’t Even Have a Plan
Despite how important estate planning is, most Americans haven’t done it. Trust and Will reported that, “In total, 55% of Americans have no estate plan at all.” That’s a lot of people without a plan for their money, property, or—most importantly—their kids. Estate plans allow you to make critical decisions, like naming guardians. This is critical if you become unable to make decisions or after you’re gone.
So, What Should You Do?
If you’re thinking about future children, your estate plan should be flexible enough to adapt. Here are a few tips for doing that well:
- Use Inclusive Language that Covers a Wide Range
- For example, wording like “all my children, born or adopted, now or in the future” ensures no one gets left out and leaves little to no room for any gray areas. It’s a simple way to future-proof your plan and prevent legal confusion.
- For example, wording like “all my children, born or adopted, now or in the future” ensures no one gets left out and leaves little to no room for any gray areas. It’s a simple way to future-proof your plan and prevent legal confusion.
- Create or Update a Trust with Specific Guidelines
- A trust with specific details on when and how distributions will happen can be a great tool to help manage your assets for future children. For example, you might set it up, so funds are released at certain ages or for specific milestones like college. You could also give a certain amount of control to a trustee. Just be cautious—putting too much power in one trustee can be risky the future is unknown, especially for an unborn child.
- Be Thoughtful About Guardianship
- You can name a guardian for “any minor children,” which includes kids not yet born. But talk to your chosen guardian ahead of time. Life circumstances change and the chosen guardian you trust now may not be the best fit down the road. Remember, after considering all circumstances at that point in time, the court will have the final say in guardianship.
- Keep It Simple
- Trying to cover every scenario may be tempting, you don’t want to make your estate plan hard to follow or change it when you need to. And the key is to keep it simple. Stick to broad provisions and update and be flexible with your changes as your life changes.
- Trying to cover every scenario may be tempting, you don’t want to make your estate plan hard to follow or change it when you need to. And the key is to keep it simple. Stick to broad provisions and update and be flexible with your changes as your life changes.
Bottom Line: Plan Now, Update Later
If you keep it simple and have the flexibility to make changes as your life changes—It’s okay to plan for children you don’t have yet. The most important part is having a plan to safeguard your future. Then, as your life evolves, you can tweak it to match your circumstances.
Our trusted attorneys at Williams Starbuck can help you craft a plan that is tailored specifically for you. Contact us today to take the first step to peace of mind for your future.
