Having a child unexpectedly can be a great source of happiness for a couple; however, it also comes with a host of responsibilities, including the need to plan for the future of your estate. A couple may not want Maryland intestate laws to dictate the probate process, so it may be necessary to revisit their estate plans when a new child is born.
Wills, trusts and new children
A legally binding and valid last will and testament reflects the wishes of the person who wrote and signed it. Anything not mentioned in the estate will be handled by the courts instead of your wishes. Therefore, if nothing in a will addresses a new child, the wishes of deceased parents or guardians regarding the care of a loved one may not be fulfilled.
There are various ways in which the will can direct the assets to take care of a young person. For instance, some may establish a trust to manage better how the assets are used for the child’s benefit. This may involve investing the money in safe ventures, directing funds toward future college expenses or providing a stipend to cover living expenses once the child reaches the age of 21.
Revisiting estate plans
Effective estate planning could protect the child from mismanagement of funds. Also, the planning could consider The young person’s immaturity and lack of experience. Although an unexpected child will reach maturity eventually, that does not mean they can manage finances.
Creating an estate plan to care for loved ones is important, but revisions may be required as circumstances change. Adding a new child, inheriting a large sum of money, or experiencing major health issues are all reasons to revise the documents. Making changes ensures your wishes are fulfilled and loved ones are taken care of after you pass.