The birth of a child is an event fraught both in excitement and anxiety. The parents are looking forward to welcoming their new child in their life but also may be concerned about the labor and delivery process. With all these thoughts it is easy to overlook one important part of becoming a parent: estate planning. Estate planning can be a way to ensure new parents have secured the care and finances not only for their future, but for their child’s future.
Execute a will or trust
One thing most people associate with estate planning is executing a will or trust. In a will or trust you can leave your assets for your new child to inherit. This is a common way to help plan for your child’s future. If a parent already has a will or trust in place, it may need to be revised to include the new addition to the family.
Establish a guardian
In a will, a parent can also allocate a guardian who will look after the child if you and the child’s other parent pass away before the child is grown. A guardian can care for the child as well as oversee the child’s financial affairs until the child turns 18. Legally, when selecting a guardian, the child’s best interests must be made paramount.
Execute “living documents”
It is also important to execute living documents, such as financial and medical powers of attorney as well as a living will. In a financial power of attorney, you will select a person to manage your financial affairs should you become incapacitated. In a medical power of attorney, you will select a person to make health care decisions on your behalf if you become incapacitated. And in a living will you will outline what end-of-life care you wish to receive. All of this is important, as it ensures your loved ones will know what your desires are during a difficult time.
Learn more about estate planning
As this shows, even new parents can benefit from estate planning. Ultimately, this post is for educational purposes only. Those in Florida who want to learn more about estate planning may want to explore our firm’s website for further information.