Couples expecting a baby often think a lot about what they can do to improve their child’s future. Things like establishing a college fund might come to mind. But, there’s another critical bit of planning that you need to do.
Now is the time to get your estate plan in order. This plan should address the needs of your new baby so that you can ensure that you have a say in how they’re raised if you and their other parent both pass away.
What do you need to think about?
There are a few ways that you can set things up for your children. You should select a guardian for them. The person you name will raise your child if something happens to you. They should be someone who can do this how you would if you were alive. Additionally, they should be able to keep up with your child.
You may be able to help with the expense of raising a child by establishing a trust or drafting a will. Your financial accounts can also help if the person who will be financially taking care of your child is named as the payable on death designee on those accounts.
Thinking about who will make decisions for you if something happens is another important part of the plan. The person who will care for your children should be able to focus on them. It’s equally important that you have your health care and financial power of attorney designations set so the person you name in each can make the decisions you want them to render.
Taking care of your estate plan is critical when you have young children. This is the only way to ensure they’re taken care of if something happens to you. As they grow, you may decide that you’re going to change the plan some. Because of this, it’s a good idea to review it periodically to ensure it still conveys your wishes.