Congratulations, You’re a New Parent! … Now What?!?

Caring for a new baby can feel overwhelming. There’s the feeding, and the changing and the sleepless nights … and that’s just the beginning! In the blink of an eye, you’ll be shopping for colleges together!

There’s no better time than today to start planning for your little one’s future, and putting an estate plan into place is a smart first step. From designating a guardian, to creating a trust, the decisions you make now can set up your child for great success ahead.

Simply put, an estate plan is a set of legal documents that, in the event of your death, spells out your wishes regarding who would be responsible for your child, and how your assets should be distributed.

Here are some of the things you can do with a proper estate plan:

Designate a Legal Guardian for your Child

If both you and your spouse died, who would raise and care for your child? Selecting a guardian is a major decision – and an important one. Consider choosing someone who shares your values and will provide your child with a loving home. And be sure your Will specifies the name of your desired guardian, lest a court make that decision for you.

Name an Executor for your Estate

After your death, you’ll need to have a trusted friend or family member settle your estate, pay any taxes owed, and distribute your property in accordance with your wishes. Choosing someone now, and establishing that contact in your Will, assures a court won’t be deciding for you later.

Assign Powers of Attorney

Another critical part of a good estate plan includes a pair of documents called the Power of Attorney for Property (POAP) and the Power of Attorney for Healthcare (POAH). These documents protect you during your lifetime, and an Agent of your choosing will act on your, and your children’s behalf, should you become incapacitated and unable to make decisions or take actions for yourself.

Establish a Trust

Setting up a Trust ensures that your money and assets are protected and given to your loved ones as you intended. And appointing a Trustee can help your child manage that inheritance carefully.  Different than a Guardian, who is responsible for your child only until they turn 18, a Trustee can provide crucial financial boundaries for a still-young adult.

Get Life Insurance

While a life insurance policy isn’t technically part of an estate plan, it can be just as important as a Trust and a Will when planning for the unexpected. Life insurance proceeds can make a big difference in helping with the financial impact of an unexpected death.

Update Your Beneficiary Designations

Check your retirement accounts and life insurance policies -- are all your beneficiaries up to date? Things change, and if you established an IRA or 401(k) before your child was born, or even before your marriage, your desired beneficiary may be different now. If you do need to

make changes, your financial institution offers simple paperwork for updating those beneficiaries.

You’ve already done so much to ensure that your child will grow up in a loving and supportive environment -- make sure that if something happens to you, your choices will allow your parenting spirit to live on.

At Erwin Law, we’ve been helping new parents set up well-considered estate plans for over 30 years. Call us at 773-525-0153 and let our experienced estate planners walk you through the process, one step at a time. Together, we’ll create personalized legal documents tailored to your ever-changing needs.