While it can be critical to oversee your child and support them through the early stages of their life, keeping your family’s financial future secure is also essential when you’re a new parent living in Florida. Using an estate plan to provide this protection is an excellent choice.
Updating your will is critical
It’s essential to add your new baby’s name to an estate plan when they’re born. Doing so makes it transparent who receives your property when you die. If you fail to complete this step and die without a will, your estate goes into probate, and the court system determines the distribution of your assets and care for your child. Avoiding this outcome is easy and can be completed by creating an estate plan meeting your requirements and expectations.
Using a trust to add your child to retirement accounts and your life insurance policy
Protecting your family’s financial future can be done by setting up a trust and naming your minor child as a beneficiary of your retirement accounts and life insurance policies. With a trust, you can stipulate when these assets are distributed to your child, ensuring they are mature enough to handle them correctly.
Naming a guardian for your child and a trustee
When you have a minor child, naming a guardian and trustee are essential steps to take during the estate planning process. Doing so helps ensure your child is raised by a person you choose. A trustee can handle your child’s finances to safeguard them from being squandered.
Having a newborn baby can be exciting, but it’s also a significant responsibility. Planning for their future by using estate planning can protect your assets and provide a guardian to care for your child if you become incapacitated or die.