Welcoming a first child into the world is an exciting time but also one that requires a lot of preparation. New cribs, clothes, and other supplies are necessary to ensure that you are properly looking after your newborn, but are your prepared for their future? An estate plan is vital in making sure that you are properly looking out for your child, yet more than half of Americans do not have an estate plan in place.
There are many reasons for new parents to have an estate plan. If you do not have one in place already, here are a few reasons you should consider:
Appointing a guardian for your child
If tragedy should strike and cause you and your child’s other parent to pass away, appointing a guardian will majorly benefit the child. Instead of subjecting your child to the foster care process, you can ensure that someone you trust will look after your child in the event of your passing.
Look after your child
No matter when you pass on, you want to be sure that your child receives the inheritance you want them to have. An estate plan can help you avoid any confusion about who inherits what from your estate, and provides your beneficiaries with their inheritance in a timely manner.
Avoiding inheritance taxes
There will always be taxes on what your child inherits from you, but it is possible to minimize the taxes your child has to deal with. Certain trusts and other estate planning decisions that you can go over with an estate planning attorney can help you protect your child’s inheritance.
Establish a healthcare directive
No one ever wants to decide to end life support or make other major medical decisions for someone. By creating a healthcare directive in your estate plan, you can keep your child from making these decisions by making them on your own ahead of time.
Peace of mind
There is little certainty about what tomorrow may bring and if you are ready for it. By developing a strong estate plan, you can gain the peace of mind you deserve by knowing that you are looking after your newborn with a strong and clear estate plan.