New parents often assume estate planning is something to handle much later in life, but it is actually one of the most important steps to protect a child, especially in Mississippi where childhood legally lasts till 21 (not 18 like the rest of the country).
We strongly recommend that all new parents create a will that names a guardian for your children and set up a trust to manage the children’s inheritance if something happens to both of you.
If both parents pass away or become unable to care for the child, the guardian named in your will is presumed to be the best person for raising your child in your absence. You can name a guardian for a child who is not yet born, so there is no downside to doing estate planning before the baby arrives.
Without a legally documented choice, the court must decide—often leading to family conflict or even temporary foster placement. Choosing a guardian now gives your child stability and keeps the decision in your hands, not the court’s.
We also recommend setting up a trust for your children, even if there are not a lot of assets. Minor children cannot legally manage money, so if a trust is not in place, the court will appoint someone to manage the child’s inheritance through a limited conservatorship until the age of 21. If a caregiver needs access to these funds to care for the child, they must petition the Chancery Court for permission to use the funds. This can become very costly depending on how involved the court needs to be. Setting up a revocable living trust allows you to decide:
- who manages the money,
- what the funds can be used for,
- and at what ages the child receives it.
This protects your child’s inheritance and prevents waste, mismanagement, or financial exploitation.
You should also review your beneficiary designations for accounts and insurance policies. Most new parents rely on life insurance to provide financial security. However, naming a minor child directly as a beneficiary creates legal complications because minors cannot manage their own money (as mentioned previously). Instead, parents should name their trust as the beneficiary so the funds are protected and managed responsibly.
Finally, it is recommended that you choose someone to handle your finances and medical decisions if you become incapacitated. Powers of Attorney can allow someone you trust to manage bills, medical decisions, and direct your daily needs if you are injured or ill. Without these, your family may have to pursue a court-ordered conservatorship at a stressful time.
Abney Law FIrm, PLLC 