Why Estate Planning is Important for New Parents
Parents have a lot to think about when a child is born, and setting up a will usually isn’t on their minds. Should you create a will and set up a trust while your children are still young?
The birth of a child creates a lot of emotional upheaval, sleepless nights, and chores. Chances are you aren’t thinking about getting a will or setting up a trust for this newborn. After all, you are so busy caring for your child, and all you can think about right now is getting a few minutes to sleep. Plus, you’re still young and have a lot of life ahead of you. Or do you? Perhaps setting up an estate plan to secure your child’s future is important even if you and your spouse are healthy.
Document Your Decisions
Unless you document your choices in a legal will, you lose complete control of what happens to your child. Once you create a legally valid will and trust, your child’s future is safe and secure.
Consider Living Costs
Raising a child is costly, and the expense doesn’t stop if you die. From diapers to car seats to toys to dental visits, the cost of raising a child is one of the largest expenses you can expect to finance. In addition to daily living expenses, you need to keep educational costs, medical bills, and so much more in mind. If something happens to you, you’ll want to provide financial security for your little one.
Name a Guardian
For new parents, the importance of a will involves naming a guardian for the child. It also includes a strategy to ensure financial security exists in the event the parents die. While you should include the bequests you want to make, your focus should be on your choice of guardian for your child. After all, the guardian will become a significant influence on how your child develops emotionally, physically, and mentally.
Keep in mind that you may not need a guardian for your child for many years. Make your choice carefully and get help making this decision if you have questions. If you don’t set up a will naming a guardian and something should happen to you, a complete stranger is going to choose your child’s guardian.
Consider Setting up a Trust
In addition to making sure you have someone to raise your child, you’ll want to ensure the money is there to accomplish this task successfully. You should set up a trust as part of your estate plan, securing the money your child needs to live a comfortable lifestyle. Choose someone you trust to handle this aspect of your estate plan. All of the assets placed in the trust remain there for your child until they are needed.
Even though your life is focused on your newborn’s current needs, you should consider the importance of estate planning. Setting up a will and trust to protect your child’s future may not be at the top of your to-do list, but it should be. Reach out to an attorney who can guide you on setting up a trust, choosing a guardian, and writing a will with your children’s best interest in mind. Having an estate plan in place is one of the best ways to protect your child’s future.