Couples in Minnesota who are set to become new parents need to prepare for their bundle of joy. Estate planning is a huge step you need to take to protect your baby. You should focus on these steps.
Create your will
You need to create a will as one of the first steps in your estate planning. Focusing on your new child is the goal. As a result, you will want to name a guardian who will care for your child in the event of your untimely death. You might even want to name an alternate guardian just in case something happens to your first choice.
Without a will, the surviving family members might fight over who should get custody of your child.
Get life insurance
If you don’t already have a life insurance policy, now is the time to buy one. The funds from your policy can go toward your child’s future if you pass away. The money can even pay for your child’s future college education. Usually, the best option is term life insurance as the coverage lasts for years and premiums are cost-effective.
Create a trust
Creating a trust and holding property and assets in it is important for all new parents. You may want to leave your child certain property or assets, but if you die before your child becomes a legal adult, they might not receive their inheritance for some time. A trust will own important things you wish to leave to them. You can name a trustee who can oversee it and make sure that your child receives their inheritance at the age you see fit. The trustee can manage the assets until they reach that age.
Update beneficiary designations
You might already have your partner named as a beneficiary for a certain insurance policy or your retirement fund. Perhaps you’ve named a parent. Now, as you await the birth of your child, you will want to update your estate plan’s beneficiary designations to make sure they’re also named.
Preparing for your new child means more than buying a crib and diapers. Planning your estate secures their future.
