If you and your spouse have just had your first child, estate planning may be the farthest thing from your mind. Drawing up your will is one thing, but there are additional considerations that are important to ensure your child’s continued support. These considerations are most important for those worst-case scenarios if you and your spouse were to die suddenly.
Planning for every outcome in your child’s future
Nobody likes to think about the possibility of these events, but doing so early can ensure that your family does not suffer unnecessarily in such an event. Here are four benefits of starting an estate plan soon:
- Naming your children’s guardian: You don’t want someone, even a very close relative or friend, to be blindsided by guardianship. This conversation is one you want to have long beforehand, where the potential guardian can take part in making plans for your child’s upbringing and education.
- Creating trusts for your children: Trusts will limit the tax payments for your assets. A trust also allows heirs to gain access to your assets more quickly, circumventing the probate process.
- Choosing an executor: You need to name a person who will carry see to the probate process and carry out your will. This includes paying off any creditors and owed taxes from your estate. You need to choose someone you trust, so making this choice long in advance will help you to be confident you’ve chosen the best candidate.
- Selecting beneficiaries for life insurance policies, retirement accounts and pensions: You’ll need to update these accounts after the birth of your child to add them as a beneficiary.
Don’t wait until it’s too late
You’ve put so much thought into your child’s life. Make sure you cover all your bases by hiring an attorney skilled in estate planning. Even if your estate is small, an attorney can help arrange the most beneficial plan for your child.