Estate Planning for New Parents Does Not Have to be Tough
New parents have a lot to think about, but estate planning should be a top priority.
Starting a family is an exciting time for young people. Welcoming a new member of the family though also means that responsibilities increase exponentially. There is suddenly so much more to think about and in the midst of it all, many people may forget about estate planning. This planning is important, however, particularly for new parents and any parent with minor children. Without a proper estate plan in place, the state will determine who will take care of your children if the unexpected happens.
Estate planning sounds overwhelming, but it is easier than most people think. A Pearland estate planning attorney can help you prepare a complete estate plan that includes many of the basic elements below.
Purchase Life Insurance
Any parent understands that raising children is expensive. If one parent unexpectedly passes away, life insurance can provide the necessary funds to continue supporting the children. If both parents should unfortunately pass away, life insurance will provide the funding necessary to take the child to adulthood and can help pay for post-secondary education.
Create a Will
All new parents should make creating a will a top priority. Within a will you can name a guardian for your children, which will prevent family members from arguing over the issue. In the event that you pass away while you still have minor children, the courts will likely determine who will continue raising the child. The courts may not choose the same person you would have to raise your children, so naming a guardian within a will is a critical part of estate planning.
Review Your Beneficiaries
If you already purchased life insurance before your children were born, you likely named beneficiaries in that policy. If that beneficiary is the person you share the children with, you may not need to change it. However, you may still want to add your children as a secondary beneficiary. You also want to ensure you change the beneficiary if the person named is not the person you share the child with, so you know your child is taken care of after you pass.
Think of Setting Up a Trust
If you pass away before your child is 18 years old, they will not have access to any inheritance you have left them. Without a trust, the courts may order someone to manage the child’s inheritance. Additionally, this situation could also leave your child with a significant amount of money or property at a young age when they do not know what to do with it. Creating a trust will give you more control. A trust allows you to dictate who will manage the assets, how the money or property should be used, and when your child can have control over those assets. For many parents, creating a trust provides great peace of mind.
Our Texas Estate Planning Attorney Can Help You Prepare for the Future
If you are a new parent, it is important that you create an estate plan, and our Pearland estate planning attorney can help. At John Powell III, P.C., we can help you prepare a complete plan that is enforceable and will give you the peace of mind you need. If you do not yet have an estate plan, call us today at (832) 850-6095 or contact us online to schedule a meeting with our attorney and start planning for the future.