Parents plan for a new child in many ways. They may choose a name, decorate the nursery, purchase car seats and other safety devices or build a wardrobe for their baby. However, some parents might not be aware that creating an estate plan can be a key step after their child is born. How can an estate plan help parents prepare for the future?
Naming a guardian can provide your child with support and stability.
You know your family and your relationships. However, the person that the court will choose to raise your child if you pass away might not reflect that perspective. Naming a guardian in your will allows you to choose someone you trust to support your child and offer them guidance as they grow. It also ensures that your child will live with someone they know and trust in a difficult time.
Estate planning can protect your child’s inheritance.
You want to support your child, but that financial support might not be as effective without a plan in place. For example, your child may not have the maturity to manage their inheritance when they receive it at the age of majority. Exploring all of your estate planning tools can help protect what they receive. Not only does a trust allow you to name the person who will manage your child’s inheritance, it also allows you to define when your child will receive their inheritance or how they can use those funds.
Your estate plan can offer you peace of mind.
New parents have a long road ahead of them, and they will probably have many questions along the way. Creating an estate plan can answer some of those questions and provide you with confidence as you enter the next chapter of your life as a family.