As a new parent, you will have plenty to worry about, from what kind of baby carrier you use to addressing sleeplessness due to a colicky baby. Theoretical problems that could occur in the future likely don’t seem nearly as important as your immediate needs during the adjustment period after the birth of a child.
However, from the moment of your child’s birth, you have financial and legal responsibility for them. You likely aspire to be active in all of the major moments in your child’s life between now and when they eventually start a family of their own.
If something happens to you and your spouse, your child could be left without protection unless you act now. Creating an estate plan is an important step to take as a new parent because it gives you multiple ways to protect your child.
Naming a guardian protects them when you can’t parent
Choosing someone to fulfill your parental obligations can seem like a morbid task. Still, once you have determined who in your inner circle would be the best fit for your child’s needs and discussed the issue with them, you will likely feel much more prepared and calm about the future.
A guardian can step up if both you and your spouse died unexpectedly, which could occur in a car or a plane crash. The guardian you name can also assume authority in a situation where medical or legal issues prevent you from taking care of your child.
A living will ensures they have stability if you get hurt
Not everyone thinks about the significance of a living will when estate planning for a new child, but this collection of documents can be important for new parents. A living will often includes documents that describe your medical preferences and that authorize someone else to complete financial transactions on your behalf or make medical decisions when you can’t.
A good living will helps ensure that your family won’t lose its home or other resources if you aren’t able to manage the finances for a few months.
A properly planned legacy can provide for your child for years
A last will outlines how you want to distribute your property among the people you care about when you die. You can potentially also create a trust so that there are resources still available to your child when they become an adult.
From purchasing life insurance to funding a trust, there are many ways that you can help provide for your child’s needs if you aren’t there to personally provide for them for some reason. Discussing your assets, your family and your hopes for your child with a lawyer can make it easier for you to make the right decisions when estate planning as a new parent.
