Becoming a new mom is a joyous and exciting event. You’ve spent months designing the nursery, choosing books and toys, and picking out a name for your little one.
But don’t forget that it’s equally as important to make plans for your child’s future. These estate planning tips cover wills, trusts, and other important documents that every new mom should have.
Create or Update Your Will
When you’re young, it’s easy to put off making a will.
“I’ll do it later when I’m older,” many moms say. But accidents or illnesses can strike at any time, so it’s wise to make a will now to be prepared.
If you die without a will, the court will assign someone to serve as your child’s guardian. That person may not care for your child in a way you’d approve of. With a will, though, you can assign a trusted friend or relative as your child’s guardian.
In your will, you can also make beneficiary designations for who inherits your assets after death.
Establish a Trust
Trusts aren’t only for wealthy people with hefty savings money in the bank. With a revocable living trust, you can name someone to handle your assets for you. You may also name your child as a beneficiary so they’ll inherit your assets when you’re gone.
Many moms find trusts appealing because they can set aside money for certain purposes, such as college tuition or a down payment on a house. Young adults aren’t known for their financial wisdom, but a trust can help prevent your child from spending money recklessly.
Estate Planning Tips for When You Can’t Speak for Yourself
Who would make medical and financial choices for you if you were unconscious in the hospital? You’d probably point to your spouse or partner. But what happens if they become incapacitated, too?
A durable power of attorney is someone who takes care of financial matters for you. They can file taxes, pay bills, write checks, and more.
You can also name someone to make health-related choices for you. This person will choose your medical treatments if you’re seriously ill or hurt in an accident.
Update Life Insurance Policies and Retirement Accounts
Many retirement and life insurance accounts won’t allow you to name minor children as your beneficiaries. Still, it’s possible to skirt around this by setting up a trust with your child as the beneficiary. Name the trust as a beneficiary on your accounts to transfer funds to it when you pass away.
You can also name another beneficiary, such as a family member or close friend. If you’d like, they can manage the funds and distribute them to your child when they turn 18.
Let Jordan & White Guide You With Our Estate Planning Strategies
If you’re interested in creating a will or trust for your child, call Jordan & White at (978) 744-2811 for a free consultation today. Our team will talk with you about estate planning tips and help you make sound decisions for your family’s future.
