Estate Planning
Dad Law: The Legal Checklist for New Arkansas Dads
The legal decisions that matter most after a baby arrives, and what Arkansas law does if you don't make them.
I'm an Arkansas lawyer and a dad of four. A lot of the estate plans I draft start the same way: a new baby, and a parent who realizes nobody has been named to step in if something happens.
This checklist covers what I tell those parents. For each item, I explain what Arkansas law does if you skip it. That part usually matters more than the advice.
The Dad Laws
Dad Law #1
Name a guardian in writing
If both parents die while a child is a minor, someone has to go to probate court and ask to be appointed guardian. If you haven't named anyone, the judge chooses from whoever files. That might be the person you would have picked. It might also be a relative you wouldn't choose, or two sides of the family fighting over it in court.
Arkansas lets a parent nominate a guardian in a will or in a separate signed writing. Ark. Code Ann. § 28-65-222. The judge still makes the final decision and has to find the appointment is in your child's best interest, but a parent's written choice is strong evidence of who should serve.
When you choose:
- Ask the person first. Don't let the will be how they find out.
- Name a backup in case your first choice can't serve.
- Decide whether the person raising your kids should also manage their money. You can name one person as guardian and someone else as trustee.
If you only do one thing on this list, do this one.
Dad Law #2
Don't leave money to your kids outright
A minor can't take legal control of an inheritance. If money is left directly to your child, it usually can't be paid out until a court appoints a guardian of the estate to manage it. That guardian may have to post a bond, file accountings with the court, and get court approval for spending decisions. When your child turns 18, the guardianship ends and whatever is left goes to them.
A trust avoids both problems. You choose the trustee. You set the rules: money for school, health care, and housing while they're young, with the rest paid out at ages you pick, like 25 and 30. The court isn't involved, and your child doesn't receive a lump sum at 18.
You don't need a large estate to need a trust. If you have $500,000 of term life insurance, you have an estate worth planning for.
Dad Law #3
Check your beneficiary designations
Life insurance, IRAs, and payable-on-death bank accounts pass to whoever is named on the beneficiary form. Your will doesn't control them. If a life insurance policy you bought years ago still names an old girlfriend, she is likely to be paid, regardless of what your will says.
Don't name your baby directly as a beneficiary. An insurance company won't hand a large payout to a minor, so your family ends up in court to get a guardian of the estate appointed. Name your trust instead, or name your spouse first and the trust as backup.
Go through every account and confirm the primary and backup beneficiaries match your plan. Workplace retirement plans have their own spousal rules, so check those with your plan administrator too.
Dad Law #4
Buy term life insurance
Your kids will need a house, food, child care, and eventually college whether you're here or not. For most young families, term life insurance is how that gets covered. For a healthy person in their 20s or 30s, it's inexpensive, and the price goes up the longer you wait.
There's no single right amount. Add up the mortgage, the income your family would lose until the kids are grown, and what you want set aside for college. Pick a term long enough to get your youngest through school.
If you don't know where to start, I recommend Ethos. Most new dads don't put off life insurance because of the price. They put it off because of the process: the agent calls, the nurse visit, the blood draw, and weeks of waiting. Ethos removes most of that. You apply online in a few minutes, most applicants answer health questions instead of taking a medical exam, and many get a decision right away. The policies are issued by established insurance companies, not by Ethos itself.
The tradeoff is price. No-exam coverage can cost more than a traditional policy, so if you're in excellent health and don't mind the exam, get a second quote from an independent agent and compare. For most busy parents, though, a policy you actually buy this week beats a cheaper one you never get around to.
I don't sell insurance, and I don't earn anything from this recommendation.
Dad Law #5
Sign powers of attorney
A will only works after you die. If you're alive but can't make decisions after an accident or illness, your will does nothing. Your wife doesn't automatically have authority over accounts in your name alone, and without the right documents, your family may have to ask a court to appoint a guardian for you.
Three documents cover this:
- Durable financial power of attorney: lets someone you choose manage your money and property.
- Health care power of attorney: names who makes medical decisions for you and records your wishes.
- HIPAA authorization: lets your doctors talk to the people you name.
You and your wife should each sign all three, naming each other first and a backup second.
Dad Law #6
Handle the newborn paperwork
- Birth certificate: the hospital files it. Order certified copies from the Arkansas Department of Health once it's available.
- Social Security number: request it on the birth certificate paperwork at the hospital.
- Health insurance: employer plans usually give you 30 days from the birth to add your baby. Marketplace plans give you 60. Don't wait until the end of the window.
If you're not married to your child's mother, Arkansas law gives her custody until a court orders otherwise. Ark. Code Ann. § 9-10-113. Signing an acknowledgment of paternity at the hospital makes you the legal father, but it doesn't give you custody or visitation. That takes a court order.
Dad Law #7
Open a 529
A 529 plan lets college savings grow without federal tax as long as the money is spent on qualified education costs. Arkansas has its own plan, and Arkansas taxpayers can deduct contributions to it up to an annual limit.
Open the account, set up a small automatic monthly contribution, and leave it alone. Eighteen years of small deposits adds up. Grandparents can contribute too, which makes it an easy answer when they ask what to get the baby.
Dad Law #8
Review the plan when life changes
Look at your plan again when:
- You have another child
- You move to another state
- You divorce or remarry
- Your guardian or trustee can't serve anymore
- Your assets change a lot
If none of that happens, a quick review every few years is enough. Confirm the people you named are still willing and able, and check that your beneficiary forms still match.
Where to Start
Two things take one evening: decide on a guardian with your wife, and check your beneficiary forms. The rest can follow over the next month.
Get your plan done
I draft wills, trusts, guardian nominations, and powers of attorney for Arkansas families. If you're ready to get yours in place, schedule a consultation or call me at (501) 442-6300.
This article is general information, not legal advice for your situation. Reading it doesn't create an attorney-client relationship.