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4 Estate Planning Tips For Families

10 October 2016 by Louise Boyd

Welcoming a child into the world can change your life for the better, but it also brings forth a huge increase in responsibilities. The first weeks and months of a baby's life can be challenging for new parents, but there are several things that need to be done to protect the best interest of the child. Estate planning is important for any adult, but it becomes especially important when a child is involved. Use the following family estate planning tips to make sure that you are prepared:

Life Insurance

Life insurance is an important safety net to help provide for your family financially in the event that you pass away. Ideally, both parents should have a life insurance policy. When purchasing life insurance, take into account the young age of your child and think about how much money will be needed to raise him or her until he or she becomes an adult. 

Create a Will or Trust

A will or trust is essential to have if you have a family. If you already have a will or trust established, contact your estate planning attorney to amend it after the birth of your child. In the event that you don't have a will or trust, hire a lawyer to assist you in creating one. Having a will or trust will ensure that your assets go towards the care of your child if you die before he or she reaches adulthood.

Appoint a Guardian

No one wants to think about their child losing both parents, but it can happen. Appointing a guardian will give you the peace of mind of knowing that a person who you love and trust will step in to raise your child if you and his or her other parent both pass away. Talk in depth with people in your life, and make sure the the person you name as guardian is willing and able to raise your child if you are not around. 

Durable Power of Attorney

When estate planning, do not forget to designate a person to serve as your power of attorney for financial and medical decisions. If you were in a situation where you were mentally or physically incapacitated, you will need someone to make important decisions about your medical care and your finances. Talk with the person you name as durable power of attorney to ensure that he or she understands your wishes if you should become incapacitated. For more information, contact a law firm like Skeen Law Offices.

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