Finding out you are about to become a parent is as terrifying as it is exciting. Suddenly, you will find yourself staring down total responsibility for the well-being of another person. Not only do you have to think about their daily needs now, but you also need to consider their protection in the future, especially if something happens to you and your spouse.
Even if you have never thought about creating a last will before, estate planning is a very important step for those about to become parents. How do you ensure that you protect your new family member properly when estate planning?
Plan for their emotional and social needs
One of the most important decisions new parents have to make while estate planning is who to name as guardian for the child. The guardian will step into the role of parents and have a very close relationship with the child. They will also likely have control over their assets and decisions until they become an adult.
You need to make sure that you pick someone not only capable of taking care of the kids but also trustworthy enough to manage their finances.
Think about financial and practical needs as well
Life insurance and an inheritance can provide your children with some amount of financial stability when they become disadvantaged through the loss of their parents. Making smart choices now about how you structure that inheritance and protect it, so it can give your children a more even playing field if something tragic happens.
Investing resources so that they can continue to grow, obtaining enough insurance to cover years of childhood expenses and even creating a trust are all means of giving your children the financial protections they need if you die. Discussing your household assets and family situation with a lawyer now can help you decide which decisions will be best for your family.