Estate Planning for New Parents in Broward County: What to Do When the Baby Arrives
Having a child is the most common reason people finally create an estate plan — and for good reason. Without one, a Florida court decides who raises your child and who controls their inheritance.
Quick Answer
For new parents in Broward County, the most urgent estate planning action is naming a guardian for minor children in a will. If both parents die without a will, a Florida court appoints a guardian — which may or may not be the person you would have chosen, and can generate family conflict at the worst possible time. The second critical issue involves money: Florida law prohibits minors from directly inheriting significant assets. If your child is named as a life insurance beneficiary and inherits at 17, the court appoints a guardian of the property to manage the money until they turn 18 — at which point they receive the entire sum at once. A revocable living trust with provisions for minor beneficiaries solves both problems: it names who manages the money (the trustee) and on what terms (age milestones, distributions for education and health), and avoids court supervision entirely. New parents should also review and update all beneficiary designations on life insurance policies and retirement accounts, which pass outside of the will regardless of what the will says.
A new baby changes everything — including your estate planning needs. For most people, the birth of a first child is the moment the abstract concept of "I should have a will" becomes an urgent, concrete priority.
Here is what new Broward County parents need to address, and in what order.
1. Name a Guardian for Your Child
This is the most important reason new parents need a will. A will allows you to name the person you want to raise your child if both parents die before the child reaches adulthood.
Without a will, Florida's circuit court makes that decision. The court considers the child's best interests, but it does not know your family, your values, your relationships with siblings or grandparents, or your reasons for preferring one person over another. Family members who would otherwise agree may disagree about who should raise the child — creating conflict and litigation at an already devastating time.
A will with a guardian designation puts your choice on record and gives the court a strong starting point.
Things to consider when naming a guardian:
You can name separate people as guardian of the person (who raises the child) and guardian of the property (who manages money). This is often a good idea — your sibling who is the child's closest relationship may not be your most financially organized family member.
2. Protect Minor Beneficiaries in Your Estate Plan
Florida law does not allow minors to directly receive significant assets (over $15,000). If you name your minor child as a direct beneficiary of a life insurance policy and both parents die, a Florida court must appoint a guardian of the property to manage the funds. The court supervises this arrangement — requiring annual accountings — until the child turns 18, at which point the entire sum passes to them at once.
A $500,000 life insurance payout to an 18-year-old with no financial experience and no restrictions is not the outcome most parents intend.
The solution: a revocable living trust with minor beneficiary provisions
A properly drafted trust holds the inheritance for your children with:
The trustee you name has discretion to manage and distribute funds according to your instructions, with no court supervision required.
3. Update Beneficiary Designations
Your will controls assets in your probate estate. It does not control assets that have a beneficiary designation — which includes:
- Life insurance policies
- 401(k), IRA, and other retirement accounts
- Bank accounts with payable-on-death (POD) designations
- Investment accounts with transfer-on-death (TOD) designations
These assets pass directly to the named beneficiary regardless of what your will says. If you named your parents or a former partner before the baby arrived, those designations still control.
New parents should review every beneficiary designation and update them to reflect the new family structure. The most common approach: name your spouse as primary beneficiary, and name your revocable trust as contingent beneficiary so the trust's minor-beneficiary protections apply if both parents die.
4. Life Insurance: Do You Have Enough?
Estate planning and life insurance planning overlap for new parents. A revocable living trust can hold life insurance proceeds, but first you need enough insurance.
As a starting point for families in Broward County, consider:
- Income replacement: 10–12x your annual income
- Mortgage payoff amount
- College funding estimate
- Childcare costs during the years of dependency
Term life insurance is typically the most affordable option for young parents. A $1 million 20-year term policy for a healthy 32-year-old often costs less than $50–60 per month.
5. Your Own Incapacity Planning
An estate plan is not only about what happens when you die — it also covers what happens if you become incapacitated.
New parents should have:
- Durable Power of Attorney — authorizes your spouse or another trusted person to manage finances if you are incapacitated
- Healthcare Surrogate Designation — names who makes medical decisions for you
- Living Will — documents your preferences about life-prolonging treatment
These documents are especially important when one parent is the primary earner or primary caregiver — an unexpected incapacity without DPOA in place can freeze financial access at exactly the wrong time.
Frequently Asked Questions
We're not married. Do we need anything different? Yes. An unmarried partner has no automatic inheritance rights in Florida and no automatic healthcare decision-making authority. A will, healthcare surrogate designation, and beneficiary designations are all critical if you want your partner protected. You should also consider whether you want to name your partner as guardian if your child has no relationship with the child's other parent.
Can I name different guardians for different children? Yes, though it is unusual and courts may question why siblings should be separated. In rare situations (e.g., children from different relationships with strong existing bonds to different families), split guardian designations can make sense with proper explanation in the will.
Is a trust worth it for a young family without significant assets? For families with life insurance — which is most families with young children — a trust is almost always worth it. The trust governs how life insurance proceeds are managed, regardless of how much other property you currently own.
When should we update our plan? After every major life event: birth of another child, divorce, death of a guardian candidate, significant asset change, move to a different state.
Contact Mark Mastrarrigo P.A. to create or update your estate plan as a new parent. Our Cooper City office serves Broward County families throughout Davie, Weston, Pembroke Pines, Cooper City, and surrounding communities.