Not many milestones are as exciting as bringing a child into this world. However, many changes come with the arrival of a new baby.
One of the most important steps you need to take when you become a new parent is updating your estate plan. Keep in mind that as your dependent, your child will rely on your estate plan to protect their future should something happen to you.
Here are important estate planning steps you need to take when you become a parent.
Update your will
If you already have a will, it is important that you update it to include your child as a beneficiary. In your will, be specific about what you want your child to inherit, how and when. Never assume that your estate will automatically pass on to your child.
Update your beneficiary designations
If you initially listed your spouse as the primary beneficiary of your retirement accounts, you should consider adding your child as a secondary beneficiary to these accounts.
Name a legal guardian for your child
A legal guardian is a person you designate to take over the upbringing of your child should both parents pass on or become incapacitated before they become adults. Definitely, you would love to have your child raised by someone whose beliefs and value systems you support. Prior to settling on one, it is important that you talk to potential guardians to be certain that they are willing to take up this responsibility.
Consider purchasing a life insurance
If you have yet to purchase life insurance, now would be the perfect time to consider getting one. If you already have a policy, you should consider increasing the amount now that you have one more dependent to cover.
As a new parent, you understandably have so much on your mind. Getting your estate plan in order can give you peace of mind knowing that your loved ones’ future will be safeguarded.