New parents have a lot of tasks to think about, especially when it comes to the new baby. For some, the need to make sure the baby has everything necessary is the only priority in life. What these parents, and others, might not realize is that they need to think about how the child will be cared for if both parents pass away.
While this isn’t a pleasant thought, it is one that you need to consider so you can make a plan for the child’s care. There are a few basic points that you need to decide upon so that you can get the plan in writing.
- Who will raise your child if you can’t? This person should be named as the child’s guardian in your estate plan. Ideally, the person you choose will be able to raise the child in a similar manner to what you would do. They should be physically and emotionally able to handle the tasks that come with this duty.
- How will the expenses be handled? Some parents have assets that they can leave behind to help with the expense of raising the child. You can pass these to the child through your will and trust. You can also use payable upon death designations on bank, investment and similar financial accounts.
- What plans do you have if you’re alive but incapacitated? Making the plans for your medical are and finances can help your loved ones to be able to focus on your children if you’re incapacitated. You can give a power of attorney designations to the person you want to make decisions in those two areas.
Your estate plan can provide your loved one with considerable help if something happens to you. Work closely with your attorney to get it set up so it reflects your current wishes.