Whether you previously created an estate plan or not, when your child is born, it is time to put one in place that accounts for the new changes to your life.
Per Kiplinger, many aspects of your estate plan may warrant renewed attention once you have a child. Once you become a parent, consider taking the following important estate planning steps.
1. Update your beneficiary designations
Once you have a son or daughter, you may want to update your beneficiary designations for your retirement accounts, life insurance policies and so on. In some cases, this may require you to establish a life insurance trust. You may also need to make transfer-on-death designations for some of your assets.
2. Appoint a guardian
You may use your estate plan to name a guardian who you want to take over child-rearing duties if you die or become incapacitated and are unable to look after your child yourself. This step may prove particularly important if you are a single parent.
3. Create living documents
An advance health care directive and a power of attorney are important for everyone, but they are essential once you have a child. These documents help ensure your wishes come to fruition with regard to your own medical care. They may also help you provide for your child if you become incapacitated and are unable to do so otherwise.
Based on your circumstances, you may want to take other estate planning steps for your child. A wide variety of documents and estate planning options are available and adaptable to meet your family’s unique needs.