The importance of estate planning for new parents

On Behalf of | Feb 3, 2022 | Estate Planning

After welcoming your new baby into the world, you may begin to wonder how to leave your assets to your child in the event of a fatal medical issue.

Learning more about the benefits of estate planning and common steps people take during this time can help you.

Controlling assets

According to Kiplinger, one major reason most people choose to write a will or other legal document is that it allows them control over who makes decisions if they cannot. If you are in a coma or dead, then a guardian and trustee will look after your child.

The assets you have will usually go to the trustee until the child can handle them. Thinking about people you know who are responsible enough to complete this duty can help you control what would happen in the event of a deadly injury.

Planning for the future

While you may have a plan for where your assets will go, you could also want to take into account lifestyle choices for your child. As children grow up, what education they receive or what summer camps or other activities they attend can shape the course of their lives.

By writing down your wishes, you can help ensure that your child will not miss out on any experiences you want him or her to have.

Avoiding legal problems

Some states have legal guidelines that only allow a spouse to collect half of the inheritance if you die without a will. If you want your entire estate to go to your spouse until your child is old enough, you should clarify that in a legal document.

If you want to avoid this kind of situation, planning for your estate soon after the birth of your child can help you.