Estate planning might not be as exciting as picking out the latest baby gear or learning about labor techniques, but it's a crucial step in safeguarding your baby's future.
Let's dive into the essentials of estate planning, tailored specifically for new parents like you.
1. Choose a Guardian:
This is a big decision. The right guardian will lovingly raise your child if you're unable to. Find someone who shares your values and can provide a loving home. Discuss this with your partner and potential guardians to make sure everyone's on the same page. Without a plan, the state will step in, and you might not agree with their choice. Need help picking? Our Guardian Guide has you covered.
2. Make Your Wishes Known:
Your estate plan is your voice when you're not there. Want your kids to stay in their childhood home? Put it in your plan. Hoping they'll enjoy the same summer camp you did? Include it. The more guidance you leave, the easier it is for your loved ones.
3. Will + Trust:
A will and a trust are the dynamic duo of estate planning. They ensure your children are cared for by the guardian you choose and that they receive their inheritance in a way you see fit. With these documents, you can stagger your children's inheritance, giving them portions at different life stages. Avoiding Probate: Everyone should have a will, but if you want to spare your family the probate process, add a trust. Probate can be lengthy and expensive. For instance, a $750,000 estate could lose $37,500 in probate. Find out what probate might cost your family here.
4. Powers of Attorney and Medical Directives:
It's the thing you never think will happen – until it does. Prepare for the unexpected. A power of attorney lets someone manage your finances if you can't. A medical directive lays out your medical wishes and appoints someone to make health decisions on your behalf. Get your directives sorted here.
5. Life Insurance:
Essential for any new parent. In case of the unthinkable, it ensures your child's financial needs are met. This coverage can support their living expenses, education, and more. Most term life policies are budget-friendly and can greatly ease your family's worries.
Overall, creating an estate plan may feel daunting, but it’s the single most important thing you can do for your child if you weren’t here to care for them.
Not sure where to begin? Our Estate Planning Quiz can help you start or book a non-obligation call with us here. Don’t procrastinate, get started BEFORE baby arrives, you’ll thank yourself later. Use code BHV24 for $250 off your estate plan with Legado
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