A new baby brings hopes and dreams for the future. New parents look forward to watching their little ones grow and reach their full potential.
The addition of a brand new family member is an ideal time to review your estate plan. If you do not have a will, now is the time to write one.
Appointing a tutor and a trustee
While it may be painful to contemplate, you should designate a person to care for your child in the event of your untimely death. A tutor, known as a guardian in most states, is a person you name to care for your children if neither parent is able to do so.
Often, the tutor also serves as a trustee. Because children can not manage their own finances, a trustee is necessary to manage any money or property your child inherits from you.
Reviewing your life insurance
The death of a parent can cause financial struggles. Although the average cost of end-of-life care and funerals in Louisiana is on the low end compared to other U.S. states, average expenses still come to over $20,000, a hefty sum for many families.
However, funeral expenses are only the beginning. Your family will also need to cope financially without your support. Life insurance can ensure that your family will not have to struggle if you pass away.
Keeping your plans up-to-date
As your family evolves, your estate plan should as well. You may have additional children or acquire additional assets. An appointed guardian or trustee may pass away or have a change in circumstances. It is important to review and update your plans as your circumstances change.
As a new parent, creating an estate plan is one of the most important things you can do for your growing family.