Your estate planning needs will change with certain events in your life, including the birth of a child. You must ensure that your new baby is properly cared for if something happens to you and the other parent. If only one parent passes away, it is assumed that the other will raise the children. But, this isn’t possible if both parents are deceased.
There are several components of the estate plan that can help ensure they are cared for if something unthinkable happens. Work closely with your estate planning attorney.
What happens if you’re incapacitated?
If something happens that incapacitates you, such as being in a coma, you should have a plan set for who is going to make decisions for you. The person you want to do this should be named as your health care power of attorney. You can also name a financial power of attorney. This enables the person who is caring for your child to focus on them instead of trying to do everything. Your living will also guides your medical care in this case.
Who will care for your children if you pass away?
Your children will need an adult to raise them if neither parent is able to because of death or incapacitation. You can decide who is going to take on this responsibility by naming that person as a guardian for your children. Be sure you talk to your kids so they understand what’s going to happen. This is also a chance for you to discuss any specific wishes or plans you have that relate to the child.
How will they be financially supported?
Raising children is a costly task, so you should try to provide the guardian with as much financial support as you can. This can be done in a variety of ways. You can give them control over your financial accounts by naming them as the person to whom they are payable on death. You can also use life insurance policies, trusts and your will to provide even more support.
There are many other factors that might impact what you need for your estate plan. Talking about your concerns and asking questions can help streamline your plans and accomplish your intended goals.