Having a baby is an exciting experience for new parents, but it’s one that comes with some decisions they may not have thought about before. One of these is estate planning. Many new parents don’t consider the need to outline the plan because they don’t want to think about something happening to them.
Estate planning for new parents is a way that they can protect their children. This is a chance for them to outline what they want to happen with their child if both parents pass away.
Who will raise the children and how?
One of the most important decisions new parents have to make is who will raise the children. The individual they choose for guardianship should have similar beliefs as them about how children should be raised. The person should be able to physically, emotionally, mentally and financially handle raising the children. It’s a good idea to talk to this person so they can say if they’re prepared to take on this responsibility.
Another provision parents can make in the estate plan has to do with finances. Setting up the payable-on-death designation for bank accounts can provide the guardian with funds for the children. Setting up trusts is also beneficial if the parents have the assets necessary to do this.
Ultimately, estate planning is a very personal experience. Speaking to someone familiar with these matters is beneficial so new parents can ensure they have everything in order. This will give them peace of mind in knowing that their children will be cared for if the unthinkable happens to both parents.
