Estate planning is on many people’s to-do lists, but it feels a lot more pressing when you’re expecting. The months leading up to a child’s birth or adoption are essential for financial planning. Estate planning allows you to prepare your assets for your future and the future of your children and other loved ones.

Expecting parents may be estate planning for the first time while others are making updates to existing trusts, wills, and more. Understanding what to expect when estate planning can help streamline the process.

What Is Estate Planning?

Estate planning is a comprehensive way to prepare your assets for the future. It includes five main elements: the living will, the revocable living trust, power of attorney, the last will, and a schedule of assets.

The elements of estate planning combine to preserve your assets for yourself and your loved ones. It sets up the distribution and management of those assets during life and following your death.

Estate planning is for all expecting parents, and you don’t have to be wealthy or possess a certain amount of assets to create an estate plan.

Aspects of Estate Planning for Expecting Parents

Awaiting the arrival of a baby is an exciting time. It is also a time to ensure your children will be safe if something happens to you. The following are a few key aspects of estate planning while expecting.

Name a Trustee and Guardian

An integral part of estate planning for expecting parents is naming a guardian who will care for your child if you die. You may also name the same person as a trustee or choose another responsible individual to perform these duties. The trustee is the person who will distribute your assets to your child as directed in your estate plan.

Update Your Trust or Will

Add the name of your baby to your estate plan. This ensures your child receives the assets of your estate if you die. The court will decide who receives the assets if you die without a will or trust.

Name Your Child As a Beneficiary

Adding your child as a beneficiary to your retirement accounts and life insurance policy helps ensure they do not struggle financially if you die. A child can be named as a beneficiary as soon as they are born, but they cannot access the money in the accounts until they’re an adult. However, you can choose to set up a trust and name a trustee who will distribute the benefits to your child as you please.

Estate Planning with Dana Law Group

The estate planning experts at Dana Law Group can help you create your will, trust, and other aspects of your estate long before your baby is born. Visit the Dana Law Group website to make an appointment today.

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