Whether it is your first child or your fourth, the impact of becoming a parent is simply incredible. That little angel depends on you for pretty much everything. And you know you want the very best for your little one.
One of the most important steps you can take as a new parent is to ensure that your child’s future is safeguarded. And this is where estate planning comes in. Here are three updates you need to make to your estate plan after having a child.
Include your child in your will
It is important that you have a will in place whether you have children or not. A will ensures that your assets are distributed according to your wishes when you die. Without a will in place, it would be up to Mississippi intestacy laws to determine what will happen to your estate. Including your child in a will ensures that you set aside an inheritance for them.
Designate a guardian for your child
Having a baby is a joyous life milestone. However, this milestone also comes with the need to consider situations that may arise. If something were to happen to you and the other child before your child is grown, you would want to know that they are raised by someone whose values you approve of. Additionally, you want to have peace of mind knowing that the person who is raising your child has their financial interests at heart. This is where a guardian comes in.
Set up a trust for your child
Setting up a trust for your newborn not only sets aside assets for them but also ensures that their future is safeguarded. For instance, if you were to pass on whilst your child is a minor, they may not access their inheritance before turning 18. However, you can use a trust to fund your child’s education should you pass on before they clear school. Better still, a trust allows you to specify how your child will access their inheritance.
Becoming a parent comes with enormous responsibilities. Find out how you can update your estate plan after having a child.