Having a new baby means that parents have a lot of decisions to make. They might not think about it at the time, but there’s one important plan that many new parents overlook. Setting up an estate plan that sets out the instructions for what’s going to happen if both parents pass away.
Without a plan set in place, there’s a good chance that your child will have to go into foster care until something is worked out. It’s imperative that you set up the guardianship designations for your child if you have a minor still living at home.
Choose your child’s guardians carefully
The person who you choose should be physically and mentally able to take care of the child and raise them in a way that would respect your wishes. You should name your primary choice for guardian, but you may also need to name someone as a secondary just in case something happens with the primary person.
Organize your estate plan for their financial stability
You can also use your estate plan to financially support your child if you pass away. You can use a will, trusts, and payable on death designations to do this. You can pass things along to the guardian over the child or you can name someone else as the trustee to reduce the chance that the assets will be used for something other than intended.
Taking the time to create the plan is an important step in ensuring that your child is taken care of if you aren’t able to do this yourself. You should also review the terms in the plan periodically to ensure that it still reflects your wishes for your child. An experienced advocate can help make sure that nothing is overlooked in your plans.