Becoming a new parent is exciting and joyous but comes with many responsibilities. One of the most important things new parents in Indiana can do is to create an estate plan. Estate planning can provide peace of mind, ensure that your children are taken care of in the event of your premature death and help you pass on your assets to future generations.
Create a will
The first step in estate planning for new parents is to create a will. A will is a legal document that outlines how your assets will be distributed among your heirs after your death.
It is essential to name a guardian for your children in your will, in case both parents pass away before the children reach adulthood. Parents should choose someone responsible who shares their values and parenting style.
Establish a trust
In addition to a will, new parents may also want to consider establishing a trust. A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of your beneficiaries.
A trust can provide for your children’s financial needs if you pass away before they reach adulthood. Additionally, a trust can help protect your assets from creditors, lawsuits and other legal issues.
Consider life insurance
A life insurance policy can provide financial support for your children during your untimely death. Consider purchasing an approach that is large enough to cover your family’s living expenses and any outstanding debts, such as a mortgage or car loan.
Designate beneficiaries
When creating an estate plan, parents should designate beneficiaries for their assets. This includes retirement accounts, bank accounts and investment accounts. Ensure that your beneficiaries are up-to-date and reflect your current wishes.
Prepare advanced directives
New parents should also consider preparing advanced directives, which are legal documents that outline their medical wishes in case they cannot communicate them themselves. This includes a living will, which summarizes your end-of-life wishes and a durable power of attorney, which designates someone to make medical decisions on your behalf.
New parents can ensure their children’s future
Estate planning is an essential consideration for new parents. Taking the necessary steps can provide peace of mind and ensure your children are cared for during your untimely death.