Estate planning tips for new parents

On Behalf of | Jan 6, 2021 | Estate Planning

Becoming a parent for the first time has the power to change your entire worldview. You are no longer at the center of your universe, but instead, your life revolves around your child. You’ll want to do everything that you can to protect your child both now and for the rest of their life, and make sure that they get only the best opportunities.

While there are many things that you can do as a new parent to give your child the best start in life, one thing that you may want to seriously consider is making an estate plan. While it may be uncomfortable to think about what might happen to your child in the event that you or the other parent passes away, it is important to plan for this unlikely event so that you both have peace of mind and so that your child is protected. The following are some tips for making an estate plan as a new parent.

Name a guardian for your children in your will

You’ll probably have strong opinions on who you would like to raise your child in the event that both of their parents pass away. You can state these preferences in your will. This will ensure that no disputes arise between family members in this event and that your child would not be raised by someone whom you don’t trust.

Consider setting up a trust

If you pass away before your child turns 18, this could lead to a situation in which the court appoints a person to manage their inheritance for them until they become an adult. Then, they will be set to inherit a potentially huge sum at age 18. You can avoid this eventuality by setting up a trust for your child with specific provisions in place.

If you have recently become a parent and you don’t yet have an estate plan in place, it is important that you start to explore the key actions you can take so that your child’s future is secured.