Having a new baby is exciting for any Pennsylvania resident. If you are a new parent, now is the time to begin planning your estate. These are the things on which you should focus to protect your child’s future.
Create your will
Creating your last will and testament is crucial once you become a parent. You will want to name a guardian or guardians who will raise your child if something unexpected were to happen to you while your child is still a minor. If you already have a will, you should make changes to it to name a guardian.
You should also name someone you trust as the executor of your will. This should be someone completely trustworthy as they will have control over anything you leave to your child unless you designate a different trustee.
Create a trust and choose a trustee
Creating a trust for your child is a good idea. You can name a trustee who can handle the assets you plan on leaving to your child if you pass away before they turn 18, or you can set an older age. The trustee will oversee the funds and ensure that they go toward the benefit of your child and spent as you specify.
Create powers of attorney
You should create powers of attorney regardless of your parental status. These documents can help your wishes be carried out if you are ever incapacitated in the future and unable to transact your own business. A financial power of attorney lets you have a trusted person handle all your financial matters such as paying your taxes and bills. A medical or healthcare power of attorney gives you the opportunity to name someone as your agent for ensuring that your medical and health-related wishes are carried out.
Get life insurance
Getting life insurance is a must once you become a parent. It safeguards your children as you can leave them a decent amount of money if you pass away unexpectedly while you’re still young.
These are the most important estate planning steps to take once you have a child, aside from consulting with an estate planning attorney to help ensure that your wishes are carried out the way you intend.