As a new parent, you have a lot on your plate. Figuring out your family’s new routines, ensuring that your child has plenty to eat and gets plenty of rest, and ensuring that your taking care of yourself as much as possible can feel overwhelming at times, especially as you continue to work.
As a result, issues like estate planning can easily fall by the wayside. But we encourage you to avoid putting off this important task, as there are benefits to creating an effective estate plan as a new parent.
But not all new parents realize that. Some think that estate planning is only meant for people later in life or for those who have a large number of assets. But that isn’t true. An estate plan is right for you right now. Let’s look at how a well thought out estate plan can help you as a new parent and protect your loved ones.
The benefits of estate planning as a new parent
It may not seem like it at first glance, but there are several advantages to creating an estate plan as a new parent. Here are some of the biggest benefits:
- Security by naming a guardian for your child: A portion of estate planning is focused on protecting yourself and your loved ones in a worst-case scenario. For example, who will take care of your child if you and their other parent pass away? Without an estate plan specifying who will act as guardian, there may be familial infighting over who will have custody of your child. Therefore, you might find an estate plan beneficial in reducing the risk of conflict and ensuring that your child is raised by individuals you trust should the worst happen.
- Financial protection for your child: Much of the estate planning process is focused on the distribution of assets. This can be especially key when you’re a new parent, as you’ll want to ensure that your child is financially stable for a long time to come. You can achieve this by both specifying which assets will be left to your child and who will be responsible for managing those assets until your child is old enough to inherit them in full. You can also set parameters on when assets can be released to your child to ensure that those financial assets last well into the future.
- Security in the event of incapacitation: Estate planning isn’t always focused on what happens when you pass away. It can also specify what should happen if you become incapacitated. This is important because your child will still need to be cared for even if you’re unable to make important health and financial decisions for yourself. By using your estate plan to create a health care directive and a power of attorney, you can name someone you trust to manage your affairs while you’re incapacitated, which will ensure that your child continues to have a roof over their head and their needs met.
Don’t put off estate planning after becoming a new parent
Far too many people put off estate planning until it’s too late. But each day that goes by without an estate plan in place is a risk to you and your loved ones. So, instead of taking unnecessary chances, think through what kind of estate plan you want to protect your interests, your assets and your child. That way you’ll have a roadmap for creating an estate plan that works for you and your family.
