New parents have a lot of tasks they need to take care of. These include the obvious things like buying diapers and feeding the baby. But, there’s something else they need to think about – setting up their estate plan.
There are many things that you need to think about as you get started planning for your baby’s future. These three points are a good starting point as you get to work on the estate plan.
1: Naming a guardian
One of the most important things to do is name a guardian for your baby. This is the person who will step into your role to raise your child if something happens to you and their other parent. It’s a good idea to discuss your wishes with the person you’re naming so they know what to expect.
2: Setting up financial matters
If you have the financial means, you can set the plan to take care of your child’s financial needs. There are a few options to consider. This includes naming a payable-on-death designee for financial accounts and writing out your will. You may also need to establish trusts.
3: Planning for end-of-life situations
While it doesn’t directly impact your child, you should ensure that you have plans for what will happen with your affairs if you become incapacitated. Setting up your powers of attorney for health care and finances enables you to name the person who will take care of things if you can’t do it on your own.
Having a comprehensive estate plan is critical for all adults; however, it’s especially important for parents. Working with someone familiar with these matters is beneficial.