If you’re a new parent, you’re likely beaming with excitement. Talk about that joy, love, and responsibility for your child’s future. But along with the happiness comes the need to plan. Estate planning might sound like something only wealthy or older people do, but it’s just as important for new parents. It is about ensuring your children are cared for if something happens to you. 

In this article, we will tell you more about some key estate planning tips to protect your children’s future. 

Choose a Guardian Carefully

Picking a guardian is one of the toughest but most important decisions you will make. This person will step into your shoes if both you and your spouse pass away. Think about their lifestyle, values, and ability to care for your child. Do they have a stable home? Are they good with kids? 

Do they live close by, or would your child have to move far away? It’s also smart to name a backup guardian in case your first choice can’t take on the role. Once you’ve decided, have an open conversation with the person you choose.  

Set Up a Trust for Your Children

A trust is another tool to protect your children’s financial future. It is like a safe where you can put money or assets for your kids, with rules about how and when they can use it. For example, you might set up a trust to pay for your child’s college or give them money when they turn eighteen or twenty-five years old.

A trust is helpful because it lets you control how your money is used, even if you are not around. You’ll need to choose a trustee, someone you trust to manage the money responsibly. This could be the same person as the guardian or someone different, like a family member or a professional. Setting up a trust might sound complex, but a lawyer can guide you through it. It’s worth the effort to make sure your children’s financial future is secure.

Write a Will

A will is one of the vital pieces of any estate plan. It is a legal document that says what you want to happen to your money, property, and belongings after you pass away. More importantly for new parents, a will lets you name a guardian for your children. This is someone you trust to raise your kids if you and your spouse can’t.

Without a will, a court may decide who takes care of your children. This could lead to someone you wouldn’t choose, like a distant relative, stepping in. To avoid this, sit down and think about who you would want as your child’s guardian. It could be a close family member or friend who shares your values and can provide a loving home. 

Make sure you talk to them first to make sure they’re willing to take on the role. Remember, you don’t have to do estate planning alone. You can work with a reputable estate planning attorney in Raleigh to help you create a will, trust, or other documents that follow your state’s laws.  The lawyer will give the right advice on how to not only plan your estate but also how to keep it updated, safe, and accessible to the people you choose. 

This can save you time, plus you can avoid some mistakes that could affect your children’s future.

Get Life Insurance

Life insurance is a must for new parents. If you or your spouse passes away, life insurance provides money to support your family. This can cover daily expenses, childcare, or even college costs for your kids. It’s a safety net that gives you peace of mind.

There are two main types of life insurance: term and whole life. Term life insurance covers you for a set time, like twenty years, and is usually cheaper. Whole life insurance lasts your entire life but costs more. As a new parent, term life insurance is often enough to cover the years when your kids depend on you most.  

Name Beneficiaries for Your Accounts

Many of your accounts, like bank accounts, retirement plans, or investments, let you name a beneficiary. This is the person who gets the money if you pass away. For new parents, it is smart to name your children as beneficiaries, with a trusted adult managing the funds until they’re old enough.

Check your accounts and update your beneficiaries if needed. For example, you might have listed your spouse or parents before you had kids. Now that you’re a parent, make sure your children are included.  

Keep Your Plan Updated

Life changes fast, especially when you are a new parent. You might have more kids, move to a new state, or change your mind about guardians or trustees. That’s why you should update your estate plan every few years or after big life events, like a new baby or a divorce. Keep your documents in a safe place, and let a trusted person know where to find them. If you use online accounts for banking or investments, make a list of passwords for your executor or trustee to access them.

Talk to Your Family

Estate planning can feel private, but it’s important to talk to your family about your plans. Let your chosen guardian, trustee, or executor know what you have decided and why. This avoids surprises and makes sure everyone is on the same page. You don’t have to share every detail, but giving them a heads-up helps them prepare.

Wrapping up

As a new parent, your love for your child drives everything you do. Estate planning is a way to show that love by protecting their future. You can do so by thinking ahead and writing a will, setting up a trust, and getting life insurance. However, it is not about expecting the worst but being ready for anything. Take the first step today, and you’ll have peace of mind knowing your children are protected, no matter what.