There is nothing more exciting than bringing a child into the world for the first time. While your life is sure to change in many ways, there’s nothing you can’t handle with proper preparation.
Estate planning may not be the first thing you think about after having a child, but it should be high on your priority list. There are a variety of steps you can take to give yourself peace of mind, while also protecting your child in the event of your passing.
Here are three steps to consider taking:
- Name a guardian: If you and your spouse pass on before your child reaches age 18, the person you name as guardian will step in to raise them. You can name almost anyone, so carefully consider all your options.
- Naming your child as a beneficiary: For example, you may want to leave all your assets to your child upon your death. And maybe you want to do so in a trust, as to ensure that they use the proceeds wisely. You can do all this through proper estate planning.
- Purchase life insurance: You want your child to be taken care of in the event of your death. With a life insurance policy, it’s easier to protect them from a financial point of view.
As soon as possible after having your first child, review your estate plan with an eye toward making the necessary changes. It can be stressful and time-consuming, but once you have everything in order you’ll feel much better about the future well-being of your bundle of joy.