Key Estate Planning Tips for New Parents
The moment you become a parent is the same time that creating an estate plan becomes much more urgent. Many of new parents are unfamiliar with the strategies and tools associated with estate planning, making it somewhat of an overwhelming experience.
However, estate planning does not have to be overwhelming. The following are three simple questions that can help you get this process started after the birth of your child:
Whom do I want to be the guardian of my child?
It’s important to consider whom you want to raise your child in the event of the untimely passing of you or your partner. There are several factors you should consider as you make this decision. Who is best suited to handle the emotional and financial responsibility associated with raising a child? Whose parenting style would be most like your own? Will your choice of guardian allow your child to maintain at least a somewhat consistent lifestyle?
Be sure your proposed guardian has consented to your choice and fully understands the responsibility he or she could have.
What do I leave behind to my child?
When it comes to inheritance, each situation is different from the next. As your child gets older, you can make decisions based on his or her personality and spending habits. You might consider whether you will leave a lump sum or set up a trust, for examples. Always be honest with yourself about your child’s strengths and habits.
How can I prepare my child for his or her inheritance?
As a parent, you want your child to be in the best position to succeed related to how he or she handles an inheritance. To that end, serve as a good example for your children with your spending habits and teach financial literacy and responsibility from a young age.
For the guidance and advice you need on this important issue, contact a dedicated Florida estate planning lawyer with BaumannKangas Estate Law.