When your child is born, you probably have a lot of questions. What will they be like as they grow? Will you be able to do what is best for them? One way that you can give yourself peace of mind is to build an estate plan to protect your child’s future.
Create or update your will, your beneficiary and other documents.
You want to provide for your child and to protect their future. Your estate plan is one of the best ways to do that. Whether you have a preexisting estate plan or want to create a will, your current documents should include considerations for your child. You may also want to update the beneficiaries named on other documents like your life insurance, retirement accounts and other funds.
Name a guardian for your child.
You want to be there for your child, but what if illness or an accident takes you from them? Designating a guardian in your will allows you to choose your child’s guardian, a person who you trust to care for your child and to raise them in the way that you want them to be raised. Forbes suggests listing out your values for a guardian and discussing your wishes with your loved ones before naming them in your will.
Consider setting up a trust for your child.
While many turn first to wills for estate planning, you should consider all your options. Placing property in trust for your child could be an important step in estate planning. Not only do trusts avoid probate if you pass away, they also protect these assets from lawsuits and other challenges that may arise.
By placing property in trust, you can also lay out guidelines for the trustee if you are unable to administer this property yourself. When will your child receive the property you have placed in trust? What kinds of purchases or investments can the trustee make while your child is underage? Laying out these guidelines will give a clear plan for the property placed in trust.
With careful planning, you can create an estate plan that protects your child no matter what your future holds.