New parents are often so focused on making sure that they’re meeting their child’s immediate needs that they don’t take the time to plan for the future. There are many things that they need to consider when they’re getting this together. One of these isn’t very pleasant to think about, but it is necessary – the estate plan.
Around 64% of adults in America don’t even have a will. This is something that could prove devastating if something would happen to new parents. By taking the time to create the estate plan now, they can have a say in what will happen to their children if they aren’t here to raise them.
One thing that you must do in your estate plan is name someone as your child’s guardian. This is the person who will raise the child for you. Some people choose a trusted family member, while others choose a friend. What’s important here is that you pick someone who will raise the child in a manner similar to what you’d do if you were still alive.
Your estate plan can also set up financial support for the child. You can do this by leaving assets to help with the cost of raising them. Your will is one option for this, but you can also look into trusts. Remember that trusts provide you with a more private way to move assets after your death. You can also use the payable on death designation on financial accounts, including checking and savings, to help provide for them.
The more comprehensive your estate plan, the more likely it will provide for your children and protect them at a time when they’ll need it. Just remember that you need to review it periodically to ensure it still reflects your wishes.