Estate planning for new parents

Estate planning for new parents

On Behalf of | Sep 29, 2021 | Estate Planning |

As a new parent, there is a lot you have to do to take care of your child’s needs right now. Nevertheless, you still have a responsibility to make plans for his or her future. As unpleasant as it may be to think about, part of that responsibility is planning for a future in which you may be absent. Estate planning for new parents assures your child’s care even if something unexpected should happen to you.

Your family situation determines which documents should go into your estate plan. Nevertheless, the following tips are applicable in most situations.

Review life insurance

Your children rely on you for financial support and will continue to do so at least until they become legal adults. A life insurance policy provides the same support to your children in the event of your death. If you already have life insurance, you should update beneficiary designations to include your child. If not, you should consider taking out a policy.

Choose a guardian

According to Kiplinger, a guardian is someone who assumes responsibility for raising your minor children in the event of your death. The most effective way of naming a guardian is in a will. The court may not accept your choice but does consider your wishes. You and your co-parent should discuss the decision carefully and ask your intended choice for permission before naming him or her in your will. You should also consider naming alternate guardians unless the first is not available should the need ever arise.

Sometimes the best way to help your children is to help yourself first. Do not neglect living documents, such as a power of attorney and advance directives. These can help ease the burden on your family should you become incapacitated and unable to make your own decisions.