You’re pregnant? Congratulations! Now that you know that you’re expecting, it’s likely that you have a long list of things to do so that you are fully prepared for the new addition to your family, from nesting in the home to preparing for hospital appointments. One thing that you may not have thought about is making updates to your estate plan.
Estate planning may be something that you believe is only necessary when approaching retirement. However, when you become a parent in is particularly important that you have an estate plan in place to ensure that your child is protected both physically and financially in the event that their parents become seriously ill or pass away. The following is an overview of the things you should address in your estate plan to protect your child.
Naming a guardian for your child
In the unlikely event that you and the other parent of your child pass away unexpectedly, another person will need to take care of and raise your child. It’s important that you have peace of mind in the knowledge that your child will be protected by someone you trust no matter what. Therefore, you should name a guardian for your child in your will.
Naming a durable power of attorney
In the event that you become incapacitated due to illness, someone will need to be able to access your finances and use them to care for your child on your behalf. This is what a durable power of attorney is for. By setting up a durable power of attorney, you will be enabling another person to make financial decisions.
Setting up trust accounts
Setting your child up for a financially secure future can be best achieved through a trust. Doing so can help you save for their education or can be a way for them to receive their inheritance.
If you are expecting a baby, make sure that you give your child the best possible future by updating your estate plan.
