The birth of a child is one of the most special times in a parent’s life. And, in addition to readying the nursery and going to doctor’s appointments, the birth of a child is a good time to consider both your future and your child’s future through estate planning. The following are three estate planning steps new parents in Jackson may want to take.
Purchase life insurance policies
Parents naturally want to make sure their children are provided for financially if for some reason they pass before their child is grown. For this reason, some new parents choose to purchase life insurance policies. Even if one parent is a stay-at-home parent, they can still have a life insurance policy, as child care will be a cost incurred if the stay-at-home parent passes away.
Execute a will and/or trust
In a will or trust, parents can outline who they want to inherit their assets should they pass away, which for most parents will include their child. Having a will or trust is important, because if a person does not have a will and passes away before the child is age 18, the court will assign a guardian for these funds and the child will receive their entire inheritance at age 18, even if that is not what the parents would have wanted. It is better to plan in advance and execute a will and/or a trust.
Select a guardian
It is the unfortunate fact that sometimes both parents pass away before their child is grown. Therefore, they will want to officially name a guardian who will raise their child should they both die before the child reaches age 18. A guardian can be named in your will. Naming a guardian is important, because in the absence of a named guardian, the decision will be left up to the court. As most parents have a very personal preference as to who they want to raise their child if they pass away, it is important to officially name a guardian in their will.
Learn more about estate planning
As this shows, estate planning is important for everyone, especially new parents. This post does not contain legal advice. Those in Jackson who want to learn more about estate planning are encouraged to explore our firm’s website for further information.