Like many people across Texas, you may not give much thought to estate planning until a major life event prompts you to do so. Having an estate plan offers benefits at all stages of life, but you may find it especially important to create one once you have your first child.
According to Kiplinger, once you have a child, you have a responsibility to prepare for the unexpected. Creating an estate plan allows you to do exactly that. Once you have a son or daughter, consider taking these important estate planning steps.
Name a guardian
You may never need someone to step in and care for your child, but in the rare case that you do, you want to have a say in who does so. Appointing someone a guardian over your child means that this individual takes over caretaking responsibilities should something happen to you.
Create living documents
Having a financial power of attorney and advance health care directive is especially important as a parent. A power of attorney helps ensure someone handles your finances if you suffer incapacitation. A health care directive spells out your wishes with regard to medical care if you are unable to do so.
Consider creating a trust
Once you have a child, you may want to make your son or daughter a beneficiary of life insurance policies or other assets. However, minors may not control property, so you may need to do so by creating a trust and appointing someone trustee over it.
Ultimately, estate planning for new parents is about preparing for the unexpected and making sure your children and affairs undergo proper management, should the unthinkable occur.