When a new baby arrives, in all likelihood, things are hectic. But there’s still one crucial thing to finalize: an estate plan. Overlooking this vital aspect of domestic administration can leave your child vulnerable to Pennsylvania law, which isn’t the best for some families.
New parents should prioritize estate planning
Right now, your life may be a starry-eyed bubble of joy and sleep deprivation. Friends and family are stopping by to meet your favorite new person, and you’re learning to navigate the demands of parenthood one diaper change at a time. Life is full of unexpected twists and turns, so establishing a secure financial foundation for your new baby is of the utmost importance.
Living documents and wills
Getting your life in order provides a secure foundation for the baby. For example, do you have proper medical proxy paperwork in place? What about an executor and power of attorney? Have you thought about guardians and trustees in the event of a tragedy?
Even if you’re currently light on assets, a formal will is still a good idea. You don’t want other to have to guess at your wishes, and if you do not spell them out, state law takes over in the absence of estate planning documents, which isn’t always ideal.
Account and beneficiary updates
Lastly, don’t forget to update all your accounts, trusts, life insurance policies, and retirement account beneficiary designations. Failure to do so could result in your child being locked out of financial security. Your health insurance may also need to be revised, as well as social media passwords and authorizations.
Undoubtedly, you’re exceptionally busy at this new and wondrous time of life. However, carving out a few hours to secure your children’s future could help set them up for life too.