If you’re having a baby in North Carolina, you’ve probably been planning for this event by accumulating diapers, onesies and changing pads. However, preparing for the unexpected is critical in addition to these essentials. Using estate planning can help protect your child if the unthinkable should happen.
Name a guardian and trustee for your child
Appointing a legal guardian for your child is essential for new parents to consider in the event of an unexpected death of you and your spouse. Naming this person while your child is a baby is important as it ensures your designee is prepared should the event occur. Preparing legal estate documents and assigning a trustee is essential in keeping your financial security intact for your children so that the funds are used for your child’s care and not squandered. Choose a person you trust for this role, such as an uncle or aunt, until your child is of legal age.
Executing a power of attorney
When you’re going through the estate planning process, it’s also vital to create a power of attorney designation that allows another party to access funds for your child’s needs if you become incapacitated. This person will also decide on health care decisions for your child.
Create a will
Using estate planning to create a will ensures your wishes are met when you pass away. Creating one lets you leave assets to beneficiaries, such as your children. However, it’s best to create a legal trust when raising a baby or small children. This action helps determine when your children can legally receive access to the property you’ve given them.
Review your life insurance needs
To ensure your child is taken care of financially if you die, it’s essential to obtain life insurance. Assessing your current position and reviewing the policy can help you determine the appropriate coverage.
While you’ll likely be around to watch your child grow into an adult, you may pass way before this happens. Preparing for an unexpected death ensures your family is cared for, providing peace of mind.