Are you the proud parent of a newborn child? While you're celebrating, it's important to also start planning for their future. Here are six additional important estate planning tips for new parents.
Get a Life Insurance Policy
A life insurance policy will ensure that your family is provided for in the case of your death. If you don't have one yet, it is crucial to get one now that you have a child. Talk with a professional to help you choose the right policy for your needs.
You can appoint other people as beneficiaries on some of your financial accounts so that they get the money if you die. This includes 401(k)s, IRAs, and life insurance policies. You can choose for your child to get the money. If your child is a minor, it may be better to create a trust with your child as a beneficiary of the trust, appoint a guardian as a trustee, and name the trust as the beneficiary of your financial account.
Appoint a Power of Attorney
It's important that you appoint someone to take care of your own finances and health care decisions if you become incapacitated. You can give someone power of attorney for both your financial and healthcare decisions or give them to two separate people.
Name an Executor
An executor is someone who will take care of the process of distributing your estate after your death. Appointing someone who you trust to do this will help prevent conflicts after your death.
Plan for Retirement
Make sure you have a solid retirement plan in place. This is especially important if you were a bit older when your child was born and you will need to support them in your older years.
Write a Will
With a will, you can properly prepare your assets for distribution after your death. This will help your family avoid court probates and uncomfortable situations. A will can cover more than just your finances; for example, you can decide what should be done with your digital assets and online accounts.
For more estate planning tips, contact us today.