Are You Expecting a Child in Florida? Four Estate Planning Tips

There are approximately 225,000 children born in Florida every year. If you and your partner are among the couples expecting a baby this year, you undoubtedly have a lot on your mind. The time preparing for the birth can feel like a whirlwind—especially if it is your first child. It is a good time to take a look at your estate plan. A few simple steps can protect your child. Here, our St. Petersburg estate planning attorney provides four estate planning tips for new expecting parents in Florida.

Estate Planning Tip for New Parents #1: Appoint a Guardian (and an Alternate) 

As a new parent in Florida, perhaps the single most important estate planning step you can take is to select a guardian for your child. In the event something happens to you and your co-parent, the person you name will step in to care for your child. Under Florida law, you can designate a guardian through your will. That is generally the best option. Couples should consider setting up a guardian for an emergency where neither is able to perform the job. It is wise to name both a primary and an alternate guardian—in case your first choice is unavailable or unwilling to serve.

 Estate Planning Tip for New Parents #2: Review Your Life Insurance Coverage 

For new parents, it does not take long to find out that raising a child is expensive. Life insurance can play a critical role in protecting your family’s financial future. As a new parent, evaluate whether your existing policy—if any—is sufficient to cover major costs such as childcare, education, and living expenses if something happens to you or your spouse/partner. Term life insurance is often an affordable option for young families. In Florida, proceeds from life insurance can be structured to benefit your child directly or through a trust.

 Estate Planning Tip for New Parents #3: Put a Minor Power of Attorney in Place 

Beyond appointing a guardian, you may want to set up a minor power of attorney to protect your child. Doing so allows you to temporarily authorize someone else to make decisions on your child’s behalf in the event that you cannot do so—even if only temporarily. A minor power of attorney is especially useful if you’re traveling, hospitalized, or otherwise unavailable for a period of time. While not a substitute for naming a legal guardian, it provides short-term protection and decision-making authority. In Florida, a properly executed minor power of attorney can grant authority over medical care, education, and day-to-day decisions for the child.

Estate Planning Tip for New Parents #4: Consider Setting Up and Funding a 529 Plan 

Finally, you may want to use this as an opportunity to provide financial support for your child’s future education needs. A 529 plan offers tax advantages. Broadly explained, a 529 plan is a specialized savings option that is available in Florida that allows for tax-advantaged growth and flexibility to pay for qualified educational expenses. The contributions grow tax-free and withdrawals are not taxed when used for eligible costs. You can even name a successor account owner in your estate plan to ensure the funds stay in the family no matter what happens.

 Call Our St. Petersburg Estate Planning Attorney Today

At Fisher & Wilsey, P.A., our St. Petersburg estate planning attorney is a reliable advocate for growing families. If you have any questions about estate planning for new parents, please call us now or contact us online for a fully confidential consultation. From our St. Petersburg office, we provide estate planning services to new parents throughout Florida.

Source:

flhealthcharts.gov/ChartsDashboards/rdPage.aspx?rdReport=BirthMonthly.Dataviewer&cid=25