Estate planning is crucial for new parents

Planning for your child’s future is likely a priority. While you are getting things all set, make sure you plan for what will happen with them if you pass away. It isn’t pleasant to think about this, but failing to plan can be devastating to your children.

You need to make several plans. First, set up powers of attorney for your finances and health care. This gives someone permission to make decisions in those two areas when you can’t make them yourself because you are incapacitated. They can ensure that your children have what they need during this troublesome period.

Someone needs to raise your children when you can’t. Your estate plan must name a guardian and trustee for your kids. The guardian is the person who will take them, and the trustee handles the money matters. You can name the same person for both or different people for each.

When you are thinking about the guardian for them, decide on someone who can handle the duty. Ideally, you will have someone who can make decisions that you’d make. Don’t name only one person. Instead, set up a chain of guardians so that if one is unable to take the children, there is another option.

Ensure that your life insurance beneficiary will use the policy for necessities. You don’t want someone who will pay for the funeral and then blow the rest of the money. They should be able to use some of the funds to support the children.

Finally, make sure that you create your will and establish any trusts you deem necessary. This sets a plan for your assets so that they go where you want them to. Without this, the state distributes them following intestate laws.