Babies bring a lot of excitement and the joy of a new life. You will have less time and more excitement. You will also have new responsibilities--both in raising your children and in providing for them if you die while the children are still minors. With careful planning your children will be cared for by someone you appoint and the inheritance you leave for them will be managed for their benefit as you direct.

Trusts for Children
In addition, you may wish to create a trust to provide for the support of your minor children or the education of your older children. When you create a trust, you appoint a trustee who will manage your assets for your children's benefit until they reach the age you specify. Without a will or a trust, the court appoints a trustee who is in control of your children's inheritances until they reach majority, in most states this is age eighteen. The trustee is responsible for managing the money for the children's benefit. When a child reaches majority, the trustee generally must give the child whatever money remains. Often this is not a good idea because the child is still too immature to manage the money. Frequently all the money is lost in a short period of time. If your children are over the age of majority and you die without a will or trust that restricts the children's access to the inheritance, the children will receive their inheritance outright, meaning they will have complete control of the inherited property. By creating a trust you can prevent your children from spending all their inheritance at a very young age.

Baby Means Review Your Will
The birth of your child may have changed your estate plan without you even realizing it. If you don't have a will, your estate would be distributed according to your states laws. Every state has an intestacy statute that describes how your estate is distributed if you die without a will—and that may not be what you want. For example, in many states if someone dies without a will but they have any children surviving, the children inherit a portion of their estate. That portion set aside for the children can't be used by the child's surviving parent to support the child while the child's other parent has duty to support the child, but without the portion that is set aside for the children, your surviving spouse may not have enough money to support your children. Therefore, it is very important that you prepare a will to be sure your assets are distributed to the individuals you wish to receive them. Check with your JAG officer to discuss the preparation or adjustment of a will.

If you have not appointed a guardian for your children and something happens to you and your children's other parent or both of you become incapacitated, a court steps in and appoints a guardian to care for your children. This may not be the person you would have selected. Although the courts formally appoint the children's guardian, courts normally place great weight on a parents' selection of guardian. A guardian is normally nominated in a will—someone whom you trust to raise your children.

You will also want to read the section on life insurance to learn how to plan your family's financial future if you die.