Welcoming a new child into your life is a joyful time. With an addition to the family comes many new responsibilities. One essential task is to plan for what will happen to your child if you are no longer able to provide for him or her.
As a new parent, tackle these key estate planning tasks to safeguard your child’s future.
Appoint a guardian
Perhaps the most important decision you can make for your children is who will care for them if something happens to you. To do this, you will need to create a will. Keep in mind that the person you choose for this role will have considerable decision-making authority over your child’s life.
Consider life insurance
Life insurance can help ensure your child has sufficient financial provisions, particularly if you have limited resources to leave behind. Evaluate how much your child will need for education and living expenses to help you determine the right size policy for your family.
Prepare for an incapacitating illness or injury
You can appoint someone to make decisions for you if an injury or illness renders you incapable of doing so yourself. A power of attorney typically makes financial decisions. A health care proxy can make medical decisions. Choosing someone you trust is essential to ensuring your family is in good hands during your incapacitation.
While all parents hope to have a long life to spend with their children, the unexpected can take you from your children too soon. Preparation is key to protecting your child’s well-being should the unthinkable occur.