Having a child means that you will have another person to think about, hopefully, for the rest of your life. Before your child’s birth, you may have already found your mind constantly on his or her needs. You undoubtedly have the mindset of an attentive and concerned parent, but have you considered how creating your estate plan could benefit your child?
You may have thought of an estate plan as a tool for older people who want to decide who gets their property. However, estate plans can include much more information and can benefit adults of any age, regardless of estate size. As a new parent, estate planning is especially important as it can help you plan for your child’s care in the event of an unfortunate situation.
Guardianship
Having a person lined up to care for your child in the event that you and your spouse become unable to do so due to incapacitation or death is undoubtedly one of your top priorities. Luckily, you can make your guardianship appointment in your estate plan. You can name your chosen guardian in your will. However, you may want to give your choice its due consideration as the court may overrule your choice if they do not feel that the person is equipped and able to provide the necessary care.
Documents for incapacitation
The possibility also exists that you could end up in an incapacitating situation that may not prove fatal but places you in a position where you cannot make important medical decisions for yourself or handle your own finances. You can utilize a living will as part of your estate plan to indicate how your health care in this type of situation should be handled. Additionally, you can create a health care proxy to appoint someone to make important medical decisions for you.
You can also appoint a power of attorney agent to make financial transactions on your behalf. This step can make sure that your child still has funds to provide for his or her care though you cannot make financial decisions yourself.
Planning ahead
Because accidents can happen at any time, you may want to begin your estate planning journey soon to make sure you have necessary information in place should the need arise. Various planning options are available, and it may benefit you to gain information on these planning tools.