When a child is born, it may require parents to review their estate plans. For instance, it may be necessary to create a will or trust or update a will or trust that existed before a New Hampshire resident’s son or daughter was born. A will allows a person to appoint a custodian to oversee any funds that a minor may inherit. Minors are generally allowed to receive assets between the ages of 18 and 21 per the terms of the Uniform Transfers to Minors Act.
It is also possible for individuals to name guardians for their children as part of a will. Naming a guardian may help to avoid custody battles. It may also prevent a situation in which a child is placed in foster care because the other parent isn’t deemed fit to have custody. An individual should ensure ahead of time that the person being named as a guardian is willing and able to serve in such a role.
Parents should strongly consider purchasing life insurance policies to replace the income that will be lost if they pass away. A death benefit may be enough to help pay for a child’s college education or to take care of other needs that a son or daughter might have. A term life policy may be sufficient for those who just need coverage until their children are grown.
Individuals may benefit from creating an estate plan regardless of whether they have children or not. An estate planning attorney may be able to talk more about creating trusts for pets or how individuals can leave money to a school or charity of their choice.