Have you just welcomed a baby to the family? Protecting your newborn goes beyond car seats and babyproofing. Ensure that your child is protected no matter what life brings by creating an estate plan.
Establishing an estate plan is one to-do task that many people put off. They may delay this very important step due to lack of time, the belief that they don't have enough money or property, not knowing how or where to start, or fear of even thinking about death.
Whatever the reason, if you've just welcomed a baby, it's time to meet with an estate planning attorney and put a plan in place.
In simple terms, an estate plan is a collection of legal tools that outline how you want your money and property to be distributed and who will care for your loved ones if you become incapacitated or pass away.
Working with a qualified attorney at Sheil Law Firm ensures your plan truly works as intended and fully protects your family — including your newest addition.
Provide for Your Child's Care
One of the most important reasons for new parents to have an estate plan is to nominate a guardian for their minor child. This is a major decision you'll want to make personally — rather than leaving it to the court.
The guardian will be the person who will care for your child if you and your child's other legal parent pass away or become unable to provide care. Choose someone who shares your values, parenting philosophy, and is both willing and able to take on the responsibility.
There are a few ways to make this nomination legally binding:
Nomination in a Last Will and Testament
A Last Will and Testament (often called a will) allows you to officially nominate a guardian — ideally, with backups — for your minor child.
Even parents who set up a trust still create what's called a pour-over will, which includes this guardian nomination.
However, keep in mind that a will only takes effect after your death. It does not cover situations where you become incapacitated while still alive.
Nomination in a Separate Writing
Depending on your state's laws, you may nominate a guardian (and backups) for your children in a separate document referenced in your will.
In some states, this document becomes effective only upon death, while in others, it may also apply during incapacity. Many parents prefer this option because it's easier to update than redoing an entire will — as long as they follow witness and notary requirements.
Delegation of Parental Powers (Power of Attorney for Minor Children)
Some states allow parents to use a Power of Attorney for Minor Children, which authorizes another adult to make certain decisions for your child temporarily — for example, if you're out of town.
This document can take effect immediately and does not require your death or incapacity to be valid. It allows your chosen person (the agent) to make healthcare or other decisions on your child's behalf.
It's especially helpful if you're traveling and leaving your child with a trusted friend or family member who may need to sign school forms, handle emergencies, or take your child to the doctor.
Distribute Your Things
While some assets (like your bank or investment accounts) hold financial value, other belongings — heirlooms, keepsakes, sentimental items — have emotional significance.
A proper estate plan should address both. Whether you use a will or a trust, you can leave clear instructions for who should receive your property and personal items.
How your loved ones go through the process of distributing those assets also depends on whether you choose a will, a trust, or neither.
Understanding Probate
Probate is the court-supervised process for wrapping up someone's affairs after death. It includes presenting the will to the court, gathering assets, paying debts, and distributing what's left.
If you don't have a will, state law decides how your property is divided — and the results might not match your wishes.
The Benefits of a Revocable Living Trust
A Revocable Living Trust can save your family time, money, and unnecessary stress by avoiding probate. It also gives you control over how and when your child receives their inheritance — instead of a risky lump sum at age 18.
While a will can include a testamentary trust that provides similar instructions, your loved ones would still have to go through probate, making the process longer and more public.
Make Your Wishes Known
Estate planning isn't only about what happens after you pass away. It also protects you and your family while you're still alive but unable to make decisions.
A key part of this is a Medical Power of Attorney (Healthcare Proxy) — a document that allows someone you trust to make medical decisions for you if you can't communicate your wishes.
Serving as a healthcare agent is a huge responsibility, so it's important to choose wisely and discuss your wishes in advance.
Start Protecting Your Family Today
Welcoming a new baby is one of life's most joyful milestones — and it's also the perfect time to make sure your family's future is secure.
At Sheil Law Firm, we help families across Colorado design estate plans that protect their loved ones and bring peace of mind.
