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New Parent? Here’s Some Tips For Planning Your Estate

Posted by Dana Law Group on June 22, 2021

As a new parent, it often seems as though there are limitless new things to worry about. But there’s one thing you can resolve right now — will your child be secure after you pass? It’s never too early for estate planning, if only to make sure that you get started when you’re younger and have fewer assets to worry about. Here are some tips for creating an estate that will help you take care of your children even in your absence.

Start With Your Insurance Coverage and Beneficiaries

You might have more life insurance than you think. Often, you have life insurance through your workplace. But you might even have small amounts of life insurance on your credit cards, your investment accounts, and elsewhere. If you’re a young parent, your life insurance policies are likely to pay a significant role in your estate planning.

Likewise, consider beneficiaries. When you open retirement accounts, you state a beneficiary. This is apart from a will or other document. Make sure you’re regularly updating your beneficiaries — or there could be issues later on.

Creating a Will and a Living Will

Your living will outlines what will happen to you if you are medically incapacitated. It’s very important. This includes things like your end-of-life care. Do you have a “Do Not Resuscitate” order? When accidents occur, it can be difficult for friends and family members to think straight or to remember what you would have wanted. A living will takes away all ambiguity at what will be a difficult time for your family.

A will, of course, is also necessary. Your will outlines what happens to your assets in the event that you pass on. Many people put off creating their will because they don’t think they have enough assets for it to matter — but even something as simple and sentimental as your wedding ring or wedding band could be something that your children inquire about.

Consider Trust Accounts

When creating your will, consider whether you may want trust accounts. Trust accounts let you control your assets even after you pass; as an example, you can open a trust account specifically for college funds for your grandchildren. Otherwise, your assets become whoever you pass them to when you pass on, to do with as they please — including giving them to someone else entirely. You could end up passing your family home to your spouse only for their next spouse to inherit it after they pass. A trust prevents this.

Many people don’t want to think about estate planning. However, the truth is that estate planning can give you incredible peace of mind. Once you know that your family is going to be taken care of, you can concentrate on other things — such as enjoying your new parenthood. Contact Dana Law Group today to get started.