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Important estate planning ideas for a new parent

On Behalf of | Jun 12, 2022 | Estate Planning

It’s hard to think about death when you’ve just brought new life into your home, but it’s important to make sure that your new baby’s future is protected. 

While no one wants to imagine their child growing up without them, you want to be certain that they will be taken care of until they are old enough to fend for themselves – and that means updating your will.

Here are important updates you need to make on your estate plans when you become a parent.

Appoint a guardian for your child

It is important to have a contingency measure in place for your child should something happen to you and your co-parent before your child becomes an adult. By designating a guardian to care for your child, you give the court a clear indication of who you think should be in charge of their future if you aren’t there.

Think about creating a trust

Consider setting up a trust for your child. The rationale is that, should something happen, your child will not be able to access their inheritance until they turn 18 years of age. 

A trust allows you to make sure the money in the trust isn’t quickly wasted. For instance, you can indicate that your child will access 10 percent of the assets in the trust after clearing high school, 20 percent when joining college and the remaining 70 percent upon completing their education – or at certain age points when they have more maturity and experience with the world.

Having a baby is a monumental life event. This little person depends on you for pretty much everything. Find out how you can safeguard your child’s future in your estate plan.