Becoming a parent is a major life event that often prompts people to consider their family’s future and well-being. Estate planning is an important aspect of preparing for the unexpected and ensuring your wishes come to fruition in the event of your incapacity or death.
By addressing key components in an estate plan, new parents can lay the foundation for a secure and stable future for their family.
1. Designating guardians for minor children
New parents often use their estate plans to designate guardians for their minor children. This involves selecting trusted individuals who will care for and raise the children if both parents cannot do so. Certain factors, such as the guardian’s parenting style, values and ability to provide a stable and loving environment for the children warrant careful consideration.
2. Creating a will to outline the distribution of assets
Creating a will allows new parents to outline where they want their assets to go upon their passing. A will allows parents to specify who will inherit their property and belongings, including financial assets, real estate and personal possessions. A will can also designate a guardian for minor children and specify other wishes regarding their care and upbringing.
3. Establishing trusts for minor children
Establishing trusts for minor children can provide additional protection and control over the distribution of assets. Trusts allow parents to designate a trustee who will manage and distribute assets on behalf of the children according to specified terms and conditions. By creating trusts, parents can ensure that their children’s inheritance remains safe and that it benefits their kids in the long run.
Once new parents create estate plans, it is important to revisit them periodically to ensure the plan still aligns with their current goals and objectives.