New parents have a lot of things to think about, as the responsibility of having a new baby doesn’t end with making sure that the little one healthy. For example, if you have an infant, now is the time for you to think about your estate plan.
While estate planning might not be something pleasant to think about, it’s one of the best ways that you can take care of your child. There are several factors that you’ll want to consider as you’re considering how to set up your estate to benefit your new baby.
Naming a guardian for your child
One of the most important things that your estate plan will do is state who you want to raise your child if you and their other parent both pass away. You should name someone who shares your values and will uphold those while raising your child. They should have the ability to care for your children.
It’s a good idea to discuss your wishes with the person who you want to raise your children if something happens to you. This is a chance to be sure they’re comfortable taking on the responsibility and that they’ll ensure that your child is well-cared for.
Considering financial security
Providing for your child financially is another consideration. You can accomplish this by determining what type of trust can benefit your baby. You should name a trustee who can be trusted to manage the assets in a way that’s best for your child.
Another consideration is passing down your financial accounts, such as checking and savings. These can be passed to a beneficiary, such as your child’s legal guardian, through a Totten trust when you pass away.
These are just a few of the tasks that go into creating a comprehensive estate plan in the wake of having a child. Carefully considering what you want for your child’s future may help you to set up a plan that provides you with the peace of mind of knowing you’re doing what you can to care for them no matter what happens to you.