Once you make an estate plan, it can be easy to forget about it. That could cause problems if you don’t address important changes in your life, family or assets before you pass away or even become incapacitated.
One of the times you must dust off your estate plan and make some alterations is if when you welcome a new child. Here are some of the things you will need to account for.
Is someone assigned to care for them if you die?
All parents should have a legally designated guardian in place in case they pass away before their children become adults. The guardian will take on the legal responsibility for raising the kids should that happen. You should also think about ways to help fund the guardian’s raising of your children. There are various options available, with varying levels of security and control over how the funds can be accessed and used.
Passing on assets to your children
Children under 18 cannot inherit directly. If you left them the contents of your bank account, they would not be able to legally access that money until they are adults, even if you die. Hence, many parents create trusts that hold assets safely until their children reach 18, or a later age if preferred.
Altering the distribution if you have more children
Let’s say you update your estate plan when you have a child, but you then go on to have further children. You’ll likely need to update it with each new child to ensure they are looked after like their older sibling(s).
Learning more about the steps to take can help you create peace of mind for yourself and your children. Getting experienced estate planning is key.