Drafting an estate plan is crucial for all adults. However, some changes in the circumstances of one’s life increase the criticalness of estate planning. And one of those changes is having a child.
As a new parent, you should draft an estate plan that protects your child’s future. You can do this by:
Naming a guardian
If you and the other parent of your child become incapacitated or die before your child becomes an adult, someone needs to take care of them. Naming a guardian when estate planning allows you to choose someone you believe is best suited to raise your child when you are unable to.
Your child’s guardian will be responsible “for their support, care, comfort, health, education and maintenance and professional services as appropriate.” Further, they will manage the inheritance you leave for your child and spend money responsibly for your child’s needs.
Distributing assets to them
With an estate plan, you can establish a trust and leave assets for your child. You can choose a trustee to manage the assets until your child reaches the age specified in the agreement or after meeting the specified conditions, for instance, after graduating high school/ college, purchasing their first home or participating in a drug rehabilitation program.
The trustee will follow your instructions to meet your child’s care, education, medical costs, and other living expenses. They need to work closely with the named guardian when making decisions to always act in your child’s interest.
Having an estate plan is vital when you become a new parent. You should be extra careful when naming people who will be responsible for your child when you are unable to. Consider legal guidance to understand how to protect your child considerably.