When you become a first-time parent, you may find yourself consumed with feedings, naps and learning the ropes of caring for a newborn on your own. With everything you have going on, it becomes all too easy to let other aspects of your life take a backseat, and many couples find they have little time left for matters such as estate planning.
Once you reproduce, however, it becomes increasingly important that you plan for your family’s future, and there are certain estate planning steps that are particularly important for new families. For example, once you have a son or daughter, it may prove wise to consider the following:
Designating a guardian for your child
No one likes to think about what would happen to their children if they were to become seriously injured or pass on. However, it may help give you peace of mind to name a guardian who would care for your child if you, or you and your partner, are no longer able to do so.
Creating a trust
As a new parent, you may also find it beneficial to create trust accounts using the names of the people you call beneficiaries in your will. Doing so has a number of benefits, with one of the most notable being that establishing a trust can help you avoid probate. It may, too, reduce the amount your beneficiaries must pay in estate taxes.
Giving someone power of attorney
In giving someone you trust durable power of attorney, you essentially give that person the power to manage your financial affairs if you become incapacitated. This person will have the ability to access your bank accounts, pay bills and make similar efforts on you or your child’s behalf.
When you have a child, your responsibilities increase, but making these three moves can help ensure that your family has options in place if you become unable to care for them yourself.