If you are getting ready to become a new parent or have recently become one, now is a good time to start preparing your estate plan. You may be overwhelmed with buying diapers, setting up the crib and nursery, and finding room for all the baby shower gifts you received. While it is easy for new parents to get lost in all the planning with a new baby, you mustn’t forget to plan or update your estate during this time. Here are 6 Estate Planning Tips for new parents who need to prepare for the unexpected and think about their new baby’s future.
Estate Planning Tips for New Parents
1. Create a Will and Choose a Guardian For the Child
Creating a will is one of the most important steps in Estate Planning. This official paperwork and documents state who your assets, savings, and property will go to after you pass away. While you may not want to think about your death, it is critical that you overcome that thinking as you want to make sure that some or all your assets go to your new child. If you already have a will, you may want to update it to include your child.
Another thing that should be mentioned in your will is who will be your child’s legal guardian if you and their other parents were to pass away before they turn 18. If you do not do this, your child could end up in the foster care system or with a family member you dislike. Therefore, when considering who will care for them, you want your child’s best interests in mind if a tragic accident or event leaves them completely parentless.
2. Select An Executor
While you are in the process of creating your will, you need to think about who you would like to be the executor. An executor is a person who will be in charge of paying your bills, taking care of your owed taxes, and making sure that your assets and property are given to the correct family members or loved ones. Some people choose their child (if they are an adult), spouse, or another family member to be their executor. In contrast, others choose a person they believe will remain neutral when family disagreements arise about the assets. However, you should do whatever is best when selecting an executor. Once you choose the perfect executor, you will want to make sure that you provide specific instructions to them about how your debt and belongings should be handled.
3. Make Sure Your Chosen Beneficiaries Are Correct
There is a good chance that you have been asked who you want to be listed as your beneficiary before. Most of the time, banks, employers, or life insurance companies ask this question. However, before you have children, you most likely choose a parent or sibling as your beneficiary. Now that you have a child, you need to consider whether you want to change or update your beneficiaries. It is usually recommended that you do not select a child who is under the age of 18 to be a beneficiary. Still, you may want to change your beneficiary to someone who will care for your children if something happens to you, such as your spouse.
4. Decide Who Will Have the Power of Attorney
Another key step that may be beneficial is deciding who will be your power of attorney. When you create a document that establishes a person as your power of attorney, you give that person the authority “to act on your behalf.” A power of attorney can be helpful if you are in an accident and become incapacitated or unable to function to make decisions regarding your finances or healthcare. Power of attorney is usually beneficial when a person has a mental illness, traumatic brain injury, dementia, or other injuries or illnesses.
Sometimes, people will choose a power of attorney for their child. This allows the individual to temporarily care for your child if something happens to you. However, knowing that a power of attorney is not a legal guardian is important.
5. Consider Establishing a Trust
When you pass away, the items you left in your will for your child will not go to them immediately if they are still young. You may want to set up a trust to hold those assets until they are old enough to receive them. A trust is an agreement stating that a specific person (a trustee) will hold onto your property or assets for another person. This is very helpful when individuals pass away and leave minor children behind.
6. Call an Experienced Estate Planning Attorney
Estate Planning Attorneys have the skills, knowledge, and experience to assist you with the Estate Planning process. As a new parent, you may have questions or concerns or simply need help navigating this complex process. That is where a South Florida Business Planning Attorney from The Siegel Law Group comes in, as we know how Estate Planning works. Call us today, and we will gladly provide legal advice and explain your options for protecting your new child’s future.
Are You New Parents?
Call THE South Florida Estate Planning Attorneys – The Siegel Law Group
If you have recently welcomed a new baby to your family, our lawyers at The Siegel Law Group want to congratulate you! We also encourage you to consider protecting your assets and property in case you are unexpectedly involved in an accident and taken away from your family. It is never too early for new parents to start preparing for these scenarios and ensuring your growing family’s future is secure.
Call our office at 561-576-6206 for a complimentary consultation, or submit our online contact form to schedule a consultation today. If you have any questions, do not hesitate to contact us.