Estate Planning as a New Parent

| Aug 19, 2020 | Firm News

If you have recently become a parent, it is likely that you have experienced a shift in your priorities. You probably now see the world with a new perspective, and you want to do whatever you can to make sure that your child is always safe and protected.

If you have not already, this is a good time to consider creating an estate plan. No one knows what the future holds, but by having plans in place, you can ensure that your child will always be taken care of. Estate planning can seem overwhelming at first, but it does not have to be. The following are some things that you should consider when doing your estate planning as a new parent.

Name a Guardian for Your Chidren

One of the most important things to do in an estate plan as a new parent is to name a guardian for your minor children. You can name a person or multiple people whom you would want to be legal guardians of your child if both parents pass away. By doing this, you ensure that the people you want will raise them until adulthood.

Name an Executor/Trustee

You will need to appoint a person that will oversee the process of carrying out your will and/or your trust. You should choose one or more people you know and trust to carry out this responsibly. This person is responsible to make sure all of your assets are managed and utilized properly for the benefit of your children.

Consider Executing a Trust

In addition to a will, you should consider setting up a trust for your child. Doing so can have several benefits. Most notably, it will mean that the assets will avoid the probate process when you pass away. Another advantage is that the assets can be held in trust while your children are minors, or longer, and managed by your trustee, which will avoid a guardianship process that may otherwise be required in order for your children to receive any benefit from the assets. You also might want to ensure that your assets do not go entirely outright to your children once your children reach 18 years of age.

These are only a couple of reasons why estate planning is important for new parents. When we become parents, we say that we would do anything for our children. Estate planning should be one of those things.