Giving birth to a child is a life-changing experience. Nobody remains the same after they become a parent; you simply look at the world differently. One of the things that change after giving birth to your child is how you go about with your estate planning. Here are three important estate planning tips for new parents.
Set Up Trusts and Appoint Trustees
Creating a trust for your child is a great way to ensure that they have money set away for their needs later in life. For example, you canset up a trust to fund their college tuition. It can be paid to the child all at once or in increments over time.
Next, appoint a trustee. This is someone who you have faith in to take proper care of the funds in the trust in the case of your death. It doesn't have to be a family member; in fact, non-family members will often be less biased and can make better decisions.
Of course, don't forget to fund the trust by transferring cash or assets into it.
Appoint a Guardian
You need to make sure that your child has someone to take care of them in the case of your death or if you are incapacitated. Again, this doesn't have to be a family member, though in this case, you'll want to choose someone who has similar values to you. Unlike the trustee, who takes care of finances, a guardian makes decisions such as where your child will go to school. You can appoint a guardian in your will.
Talk to a Lawyer
It's important that you talk things over with a lawyer so that you can update your estate plan based on your current situation. A lawyer will help you plan for your child's future and craft a proper will. Contact us for help.