As the parent of a new baby, you know that he or she will depend on you for just about everything. Children depend heavily on their caregivers in order to remain healthy, safe and protected until they are old enough to care for themselves.
From the moment he or she is born, it is important to ensure your child will have everything he or she needs no matter what happens. Your child will still need you even if something happens and you are no longer there. Because of this, new parents should update their estate plans as soon as possible.
Update guardianship
Naming a guardian in the event of your death is no simple task, but it is an important one. Without a named guardian in your estate plan, the courts would appoint one. A guardian maintains responsibility for raising your child, as well as handling any assets or finances distributed to your child. In addition to guardianship, parents may designate a trustee for their child as well.
Update power of attorney
Should you become incapacitated and unable to care for your child or make decisions regarding their welfare, you must name another adult to act as your agent while you are alive and a guardianship circumstance would not apply.
Update your will
If you do not already have a living will, it is a good time to get one in place. Your will should include and list your children as the heirs of your estate. You may also opt to set up a trust for your children through your will.