When you have a new baby, you have a lot of life changes to make. Most parents quickly adjust, but there is one major action that they might forget they need to take care of. This is estate planning. You may think that you have plenty of time to handle this matter, but the fact is that you don’t know what can happen.
Your estate plan is a way that you can help to protect your child if something does happen to you. New parents have several things to think about that when they are creating the estate plan. Together, these points outline your child’s life if you aren’t here to oversee it.
Provisions for your child
You need to think about who you want to raise your child if you can’t. Talk to this person to find out if they would be willing to accept the duty. If they are, name them as the child’s guardian in your estate plan. Because you never know what might happen, you can also name backup guardians who will be asked to step in if the primary person isn’t able to handle the duties. One thing to remember here is that the court can overrule your choice of a guardian if there is a reason to think that the person you name won’t be a suitable guardian.
You also need to name a trustee who will handle the financial matters related to the child. This person isn’t limited only to handling these matters while the child is a minor. Instead, they might have to continue with the duties until the child is responsible.
It is possible to name the same person in both of these positions, However, it is a good idea to name a second trustee, or co-trustee, if you choose to place the guardian over the financial matters. This adds an extra layer of protection to attempt to ensure that your child has the financial backing they should.
Other facets of the estate plan
There are other backbone components of a comprehensive estate plan. These include your living documents, such as the power of attorney designations and the living will. You also need to establish trusts to facilitate an easy transfer of assets to heirs and a will to cover everything else.
The more detailed your estate plan, the less likely there will be questions if something happens to you. Remember to set this up according to your wishes now because it is possible to modify many aspects of the estate plan in the future.
