New parents need to set up an estate plan

On Behalf of | May 19, 2020 | Estate Planning |

When you have a new baby, you think about a lot of the ways your life is going to change. One thing that you need to carefully consider is what your children are going to do if they lose both parents. This is an unfortunate situation, but it is one that does happen. If you haven’t set an estate plan that makes your wishes for your children known, today is the day that you should do this.

Around 64% of adults in this country don’t have a will. Those individuals will have their assets divided according to the intestate laws of the state in which they reside. They also have no say in who will raise their children and no ability to try to set up a financial plan for them.

When you set up the estate plan with your children in mind, there are several things that you need to think about. One of the primary considerations is who is going to raise them. You can name a guardian for the kids in your estate plan. You can also name a backup guardian just in case the primary person isn’t able to handle the duty.

You also need to try to set up a financial plan for them. This can be done using life insurance policies, trusts and your will. You may also consider enabling the guardian to access your financial accounts directly by naming them as the payable-on-death designee.

Your comprehensive estate plan can help your loved ones focus on helping your children during this emotional time since they won’t have to guess what you wanted. Taking the time to establish the plan and reviewing it regularly can give you peace of mind.