Congratulations! You’re having your first child. There is so much to do to prepare for this change in your life.
Sure, there are books and magazines to read about all the details of becoming a parent and what to expect with a newborn. Stocking up on all the essential items such as bottles, diaper changing tables, diapers, diaper genie, monitors, formula, car seats, crib, formula, and a high chair is essential. (Did I mention diapers???) And don’t forget about painting the baby’s room and baby proofing every aspect of your home despite the fact that the child will likely spend the first several weeks in the bassinet beside your bed. The simple reality is having a baby changes, well….. EVERYTHING! If you are like me, it all had to be done before the baby comes home from the hospital.
But, what about having a will or estate plan in place? Frankly, when expecting a new baby, most couples don’t want to discuss this topic. They don’t want to think about the possibility of not being alive to raise their family. Other times, couples don’t think they need an estate plan because they aren’t rich enough. Perhaps they feel it will be too expensive given everything else they are doing to prepare for the baby. More times than not, new parents simply don’t understand the value of having an estate plan in place.
Once a month I do a brief presentation to expecting parents about this topic. It is remarkable how many have never even considered having a will, or perhaps more dangerously, feel they can go online and draft one themselves.
The truth is that estate plans are important tools to plan for the unexpected (and even unlikely) events that require proper planning. A properly prepared estate plan further allows you to make your intentions known in the event you are unable to communicate them yourself with caregivers. It also allows you to select guardians and designate how your assets will pass. As Benjamin Franklin notably remarked, “[a]n ounce of prevention is worth a pound of cure.” An estate plan simply makes your wishes known in a manner that will be recognized by not only healthcare providers but also recognized in a court of law.
Every estate plan will have a will and/or a trust. However, a basic estate planning package has a few more documents. This should also include a living will, health care power of attorney, financial power of attorney, and a designated representative for gathering medical records. These documents all assist in how you will be cared for in the event you cannot communicate on your own behalf.
Why would you need something more than just a will? Simply, these other documents serve important roles within a properly prepared estate plan. These are:
- Living Will. A written statement detailing a person’s desires for medical treatment in scenarios where he or she is no longer able to express informed consent.
- Health Care Power of Attorney. A written statement which allows for someone else to be designated as an agent or representative, in the event the person is unable to communicate decisions about health care.
- Financial Power of Attorney. A written statement arranging for someone to manage finances in the event the individual becomes incapacitated or otherwise unable to make decisions on one’s own behalf.
- Designation of Personal Representative. A written statement, different than a health care power of attorney, that allows an individual to give authority to another to access what would otherwise be protected health care information. It is important to note this person would not have authority to make health care decisions on behalf of the person.
What about selecting a guardian? Obviously one of the last things new parents want to consider is a scenario where a guardian is necessary. However, if a guardian isn’t selected by the parents, a court will decide who will act in this role. The person(s) selected will be responsible not only for the care-giving of the child, but also managing finances on behalf of the child. Consequently, you may select different people to serve different roles. For instance, a financially savvy aunt might be the perfect person to manage the finances but she may not be the first choice for providing the environment you want for raising the child. This may be more to the uncle (and his spouse) who live in the same school district that would best serve in the role of raising the child. (It also isn’t a bad idea to choose a back-up, just in case the first picks are unable or unwilling to serve in this role if the need arises). Now, this selection is normally included in the will portion of the estate plan. However, it may be included in a codicil if changes to a pre-existing will need to be made.
Smart estate planning removes uncertainty and confusion should you be unable to speak for yourself. Too many times, when new parents plan for their growing family, they fail to consider the need for a will and other estate planning documents. Meeting with a licensed attorney who specializes in estate planning will remove the stress of what could happen. The greatest benefit is having the peace of mind that your child will be protected and your wishes followed for your own care and the future of your family.
George Zamary is the founder of the Zamary Law Firm, LLC. Zamary Law Firm practices in the areas of estate planning, corporate and employment law, civil litigation and small business representation in both Ohio and Kentucky. Visit www.zamarylaw.com for more information and to sign-up for their newsletter or visit their page on Facebook. Zamary Law may be contacted at 513-448-4150.
#NewParent #Childbirth #EstatePlan #LivingWill #HealthCarePowerofAttorney #FinancialPowerofAttorney #DesignationofPersonalRepresentative
