The birth of a child involves many questions about that child’s future. What will they be like as they grow? What college might they attend? What career will they pursue? While they dream of the future, parents should also take care to protect their child, and estate planning can be a key aspect of that protection. Why might new parents want to have an estate plan?
Naming a guardian ensures that your child will have the care they need.
Who would you want to care for your child if you died? Who do you trust to raise them with the right values and support? While the law may outline who would act as your child’s guardian if you were no longer there to care for them, you may have a different person in mind. Creating an estate plan allows you to choose a guardian for your child based on your wishes and values.
Careful estate planning can protect the money you set aside for your child.
You want to provide your child with the financial support they need, but leaving them that inheritance directly could create problems. Exploring your estate planning options allows you to create a plan that addresses those concerns. While you can leave them those funds in your will, you may also want to establish a trust to protect that inheritance, outline when they can receive money and manage valuable assets on their behalf.
Selecting a person you trust to act on your behalf can decrease stress.
If you experience an accident or illness that leaves you unable to make important medical or financial decisions, establishing power of attorney can ensure that those decisions are made by someone you trust. Not only does this give you peace of mind that you will receive necessary care, it also prevents potential conflict about those decisions and the stress that conflict can place on your child.
Creating an estate plan is one important way for new parents to protect their child’s future and to ensure that their wishes are carried out no matter what the future holds.