As a new parent, you have a lot of new responsibilities. One of those responsibilities is making sure your child has everything he or she needs if something happens to you.
Review these four important estate plan considerations to ensure your child’s well-being if you pass away.
Appoint a guardian
Your child’s guardian will be responsible for raising and caring for your child if something happens to both parents. He or she will make decisions about medical care, education and religion. You should select someone you trust whose values align with your own. If you fail to designate a guardian in your will, the court system will make that decision instead.
Plan for education
For many people, their college education is one of the biggest expenses in their life. Whether your child ultimately decides to go to college or not, you may want to plan for that eventuality by setting aside funds for those purposes.
Evaluate your life insurance policy
Whether you have private insurance or a policy through your employer, you may need to evaluate whether your current life insurance coverage is adequate to provide for your child and any other beneficiaries.
Consider setting up a trust
Minors cannot inherit until they become legal adults, and you cannot name a minor as a beneficiary of your retirement accounts. To ensure that your children have access to funds they need before they turn 18, you can set up a trust and appoint a trustee to manage those funds as you see fit.
Raising a child means you will have much to worry about over the years. With proper estate planning, you can eliminate one source of anxiety from your list.