You’re probably familiar with this concept. Most families have children with fairly narrow age gaps. the Average age gap between children It is only 24 to 29 months. But now and then, after it seems clear to everyone – including the parents – that the family is all made up, Baby Oops comes along 10 years later, and two children become three while everyone rejoices.
However, parents and grandparents need to be vigilant amid the pomp and circumstance of a new baby’s arrival. There is significance Estate planning Considerations associated with having a child who is approximately a decade younger than his or her siblings. Throughout Baby Oops’ childhood, they will be at a very different stage of life than other siblings and will likely have different needs as a result.
For anyone who finds themselves or their adult children in this situation, here is a short list of what you need to keep in mind:
1. Make sure your beneficiary designations are up to date.
Unlike your last will, which often takes into account the possibility of future children on the horizon, your will Beneficiary designations It may not offer the same comfort. Take yours life insurance Politics, for example. Your life insurance policy is not a probate asset, so it is not covered by your will. Suppose you left the proceeds of your life insurance policy to each of your first children by designating them as beneficiaries: your will may automatically count for Baby Oops, but your life insurance policy will not.
You’d be surprised how often this becomes an issue, and it’s what people ignore the most, based on my experience. Make sure you don’t forget to accidentally add Baby Oops to your life insurance policy or other non-probate assets.
2. Consider updating the guardians of your children according to your will.
Hiring grandparents as guardians for your 9- and 10-year-olds is great if anything happens to you. Kids are becoming somewhat independent at this age, and any parent knows that taking care of a fifth grader is very different from taking care of a child. To make sure children do their homework and soccer practice, grandparents may be appropriate guardians.
However, due to the constant running and even rolling on the floor to play with the baby and change diapers, grandparents may not be ideal guardians, while siblings may be. This is one of the most important areas where the age gap affects.
3. Take another look at all your credit histories.
Sure, usually when you hear the word “Asset distribution advisor“, you may first consider a financial advisor. In this case, we are referring to your portyour trustee – all persons whom you name to carry out your various estate planning wishes.
Now, you may have given this designation to your 16 or 17-year-old child, provided they turn 18 when the time comes. With Baby Oops, you probably also want to hire them when they turn 18. This way, all of your children, once they become adults, can act together as your confidants. To do this, you will need to update your appointments so Baby Oops can be part of the process.
4. Consider a trust pot to ensure fairness for your children.
If you have older children, chances are you’ve already paid for many of their expenses, while Baby Oops didn’t have the advantage of receiving as many of the same things you paid for. This is where the trust fund comes into play. It is essentially a receptacle of funds for all named beneficiaries, administered by a trustee, whereby the trustee has the power to determine how the assets are distributed.
This allows for the complexity needed when slicing the pie evenly after you’re gone isn’t the fairest way to do things.
He stays away
Having a belated and unexpected addition to your happy family is a source of joy that is a gift in many respects. But with a sufficient age gap between the children, there will be half a generation between the oldest and the youngest. In the event of your death or incapacity, the needs of the younger child will be very different.
So, if Baby Oops came with you or for someone close to you, don’t forget to take a good look at your estate planning documents to make sure everything is just as you want it to be.