Estate Planning for New Parents
By Sandra Johnson · 4 min read
Congratulations, you just had a baby. You’re exhausted, overwhelmed, and probably covered in something that wasn’t there five minutes ago. The last thing on your mind is estate planning.
But here’s the thing: having a child is the single most important reason to create an estate plan. Because now there’s a tiny person who depends on you for everything, and if something happened to you, you want to be the one who decides what happens next.
Name a guardian: this is the big one
If both parents pass away without naming a guardian in a will, a judge decides who raises your child. The court means well, but they don’t know your family. They don’t know that your sister is patient and kind, or that your brother-in-law coaches soccer, or that your parents are already in their 80s. You know these things, and you should be the one making the decision.
Naming a guardian in your will takes minutes. It’s free to think about and inexpensive to document. And it’s the most loving thing you can do for your child.
Get a basic will in place
A will doesn’t just name a guardian. It also says who gets your assets, who manages your estate, and how you want things handled. Without one, the state decides everything according to a formula that may not match your wishes at all.
For new parents, a basic will is usually sufficient. As your family grows and your assets become more complex, you can always upgrade to a trust-based plan later. The important thing is to start now.
Review your life insurance
If you didn’t have life insurance before, you need it now. And if you did have it, you probably need more. A good rule of thumb is enough to replace your income for 10 to 15 years, enough to give your family time to adjust and for your children to grow up.
Term life insurance is affordable and straightforward. Sandra can help you figure out how much you need and connect you with options that fit your budget.
Update your beneficiaries
Your new baby needs to be accounted for in your beneficiary designations. Check your life insurance, retirement accounts, and any other accounts with named beneficiaries. If you set these up before your child was born, they may not be included, and beneficiary designations override your will.
Sandra’s advice for new parents
Don’t let the perfect be the enemy of the good. A simple plan created now is infinitely better than a perfect plan you never get around to making. Start with a guardian designation and a basic will. You can always add to it later. And if you’re not sure where to start, call me. I’ll walk you through everything in about 15 minutes.
Ready to protect your new family?
Schedule a free call with Sandra. She’ll help you get a plan in place, quickly, simply, and at a price that works for your new family budget.
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