The Responsible Father… Estate Planning After the Birth of a New Child
Having a new baby and becoming a father is one of the most wonderful and exciting times in a person’s life. Though wonderful in almost every way, having a new child can also be extremely stressful and overwhelming. During this time, planning for your child’s future can seem daunting, and thinking of a time where your child would not have a father is simply depressing. However, as a father, it is your responsibility to provide for your children, even if you are not physically around to do so. If you have recently had a new baby, below are six estate planning tips to consider when creating, reviewing, or updating your estate plan.
Six Must do Estate Planning Tasks after you have a New Baby
- Create or update a revocable living trust: A revocable living trust allows parents to pass down their assets without going through the time-consuming and expensive probate process.
- Name or change guardians: Naming a guardian for your new baby is important as this person will be in charge of raising your child if you were to pass away.
- Buy or update life insurance policies: A life insurance policy will give you the ability to provide for your family if anything happened to you or your spouse.
- Designate beneficiaries for retirement accounts: Make sure to update the beneficiaries to your retirement accounts such as IRAs or 401(k)s.
- Consider trustees for minor children: If you decide to establish a trust for your child, a trustee will be tasked with looking over and distributing the assets in a trust to your child. A trustee is especially useful for beneficiaries who are under 18 years old or those who may be financially irresponsible.
- Plan for your child’s education with 529 plans or other investment accounts: Finally, with the cost of both private and public universities continuously rising, contributing to investment or savings accounts will help your child obtain the education they deserve.
Once you have a baby, you should immediately create or review and update all of your estate planning documents. While estate planning will require tough decisions about sensitive family topics, an experienced estate planning attorney will guide you through any issues you may encounter and maximize the benefits you can gain from estate planning.