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Estate planning for your newborn child

On Behalf of | Mar 25, 2020 | Estate Planning |

You and your partner are ready for your new baby. You have fixed up the baby room, purchased cute outfits and so on. Your child is going to start life happy and healthy.

Another item to add to your list is estate planning for your newborn. Experts say it is important that you take time now to help guarantee a secure future for your little bundle of joy.

Insuring the future

Life insurance protects you and your family. If one parent dies, the funds cover ongoing care of your children. If both parents pass, the money ensures a quality of living for your children until they are young adults.

A trust is an option that provides for your children if you die before they turn 18. Term life insurance makes the most sense for most parents. Besides being affordable, it gives you control over the care of your children until they turn 18.

Imposing your will

For most people, a will is important because it dictates who receives their property. For parents, though, what is most important is that they appoint a guardian to care for their children. You name someone who shares your values and will make the most favorable interests of your children their number one priority.

If you have a will, the addition of a child means you also should update your beneficiaries. The same applies to other accounts, such as retirement savings and life insurance.

Without a will, you run the risk of the state making decisions on behalf of your young children. A judge does not know you, your family situation or your wishes. You also raise the possibility of an acrimonious family fight over your assets.

Preparing for the future

You are looking forward to watching your babies grow into infants, teens and adults. Life is unfair, though, and you may not get the chance.

Prepare yourself for every possibility, including a family tragedy. A little planning now provides a lot of peace of mind.