The Legal Trap New Parents Fall Into — And How to Avoid It

Becoming a parent changes everything — including your legal needs. In this episode of Billable Banter with Ballantyne Law, James speaks with Senior Associate Sidnee Jennings about the estate planning essentials for new parents. From wills and guardianship to superannuation and enduring powers of attorney, learn how to protect your family and avoid costly headaches.

Transcript

James Ballantyne:
Welcome to Ballantyne Law, where we give clear, practical legal advice that works.
Today I’m joined by Sidnee Jennings, a Senior Associate in our team, who has some exciting personal news — she’s about to go on maternity leave.

Sidnee Jennings:
I could have shared that news myself!

James:
Sorry, I stole your thunder. Maybe you can at least share what you’re having?

Sidnee:
It’s a boy.

James:
Fantastic. With that in mind, I thought we could talk about some of the legal issues new parents should be thinking about — either before or shortly after having a child.

Sidnee:
From a legal perspective, the first thing I’d recommend is making sure you have an estate plan. That means a will and an enduring power of attorney. And if you already have those, making sure they take your new child into account.

James:
What happens if parents don’t have a will?

Sidnee:
That’s called intestacy. If there’s a partner and a child, the estate is divided between them. The first $150,000 goes to the partner, and the rest is split between the partner and child. That can cause major headaches — for example, the family home might end up partly in the child’s name, and when they turn 18, it has to be transferred to them. It’s a nightmare for the surviving parent to manage.

James:
So wills don’t need to be complicated, but they’re crucial?

Sidnee:
Exactly. Estate planning isn’t just for wealthy or older people. If you own property, have assets, or want to protect your family, you need to have a will. Having children is the perfect time to get that sorted.

James:
What should parents think about when updating their wills?

Sidnee:
The big one is guardianship — who would look after the children if both parents passed away. Importantly, the person you trust to manage money and the estate (the executor) may not be the same person you’d want raising your children (the guardian). They can be the same person, or different people. Often, it’s a good idea to separate those roles so there’s a balance.

James:
So the executor can be “the bad guy” when it comes to money, while the guardian maintains the relationship with the kids?

Sidnee:
Exactly. The executor manages the estate and funds, while the guardian focuses on parenting. That way, children aren’t given large sums of money too early, but the funds can still be used for their benefit — like education, living costs, or healthcare. Parents can also set the age at which children inherit — 18, 21, 25, or older.

James:
What about superannuation?

Sidnee:
That’s another big one. Parents should check their superannuation nominations and whether they have insurance built in. Sometimes young people don’t realise how much money could flow through superannuation if they passed away.

James:
And powers of attorney?

Sidnee:
Yes, enduring powers of attorney and advance health directives are also important. They allow someone you trust to step in and make decisions if you can’t.

James:
You’ve also mentioned “guidelines to guardians” before. What’s that?

Sidnee:
It’s an additional document where parents can set out their wishes for how children are raised — things like schooling, religion, health care, or who’s involved in their lives. It’s not legally binding, but it gives guardians guidance and peace of mind.

James:
So the key takeaway for new parents?

Sidnee:
Don’t just focus on prams and baby gear — make sure your will and estate plan are in place. It’s the best way to protect your family.

James:
Well said. Thanks for joining me, Sidnee.

Sidnee:
Thank you.

James:
And thanks to you for listening. For more legal insights, subscribe or visit ballantynelaw.com — we’re here to help.