Your life changes in many ways when you have a child. One thing you must consider right away is planning your estate. Below are the most important estate planning tips for new parents.
1. Make A Will And Appoint Guardian
Priority number one will be to appoint a guardian for your child should something unfortunate happen to you and your child’s other parent. To complete this process, you will need to have a Will. If you already have a Will in place, you can amend it to provide for your child and appoint a guardian.
2. Name An Executor
When creating a Will, you will need to appoint an executor in charge of distributing your property, selling it if need be and pay your debts. Your executor will have a great deal of control over your assets that you may be leaving to your children, so it is crucial to choose someone you trust.
3. Consider Creating A Trust
You may want to consider setting up a trust for your child, at this time. Trust assets need not go through probate, and it could save on taxes and give you even more control over the desired distributions to your children.
4. Create Powers Of Attorney And An Advance Medical Directive
Every adult should appoint power of attorney for finances and health matters should they become incapacitated. In addition, adults should have an Advance Health Care Directive with instructions for their personal health care.
This becomes even more meaningful once you have a child. Should you ever become incapacitated and you have a financial power of attorney in place, your spouse can get access to your accounts to pay any necessary bills. These bills can include emergency medical bills for your child or regular expenses like rent and food.
5. Purchase Life Insurance
Life insurance isn’t a typical part of estate planning, but it is a crucial action to take when planning for the unexpected. If you or your child’s other parent dies suddenly, the family could find themselves short on cash for everyday expenses. Life insurance can help remaining family members transition while minimizing the financial impact on your child.
Check your 401(K)s, IRAs and life insurance policies to ensure your beneficiaries are up to date. If you have forgotten to update or change beneficiaries to your spouse and they are still in a relative’s name, it could cost your family a great deal you had not anticipated.
6. Call Us For Estate Planning
If there has been a major change in your life like a marriage or birth of a child, contact our team to update your estate plan.
- Six Estate Planning Tips For New Parents. Bridget Mackay. Retrieved January 31, 2023, from https://bridgetmackaylaw.com/blog/six-estate-planning-tips-parents/
There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.
You’ve worked hard for your life, and you need to protect it. You owe it to your family and your legacy to take care of planning now. Contact Ogborne Law to schedule your estate-planning session.