New Baby? Do These 7 Things!
- Create a Revocable Living Trust.A revocable living trust is one of the best tools to use to provide a protected inheritance for your new baby. The trust document states who gets your property, appropriate ages of inheritance, and expenditures a trustee can make on behalf of your younger beneficiaries. Revocable living trusts can be adjusted or altered in response to life’s changes, making it a flexible and versatile tool for providing for your child’s future.
- Name Potential Guardians.Who do you want to take care of your new baby if something should happen to you? If you don’t nominate a guardian, the court can appoint someone, and it may not be who you’d want. Decide who is best suited for caring for your child, and make sure that person is up to the task. If this is a second or third child, revisit the topic with your potential guardians and ensure the individual is prepared to care for multiple children. If not, revise existing guardianship paperwork.
- Buy Life Insurance Policies.Life insurance is a good idea when you’re married, and it’s essential when you have a child. Revisit your life insurance coverage amounts. Now may be a good time to buy more and ensure your trust is listed as the beneficiary.
- Create Powers of Attorney, a Will, Trusts etc.When you have a new baby, revisit your estate planning documents and ensure they’re in order! With the new baby here, it’s time to create or update:
- Revocable living trust.
- Advanced Health Care Directives.
- Powers of attorney.
- Wills
- Other important legal documents
Ensure your family’s security by making sure they’re well cared for by your comprehensive estate plan.
- Designate Beneficiaries for Retirement Accounts.Revisit your retirement accounts and make sure your spouse, a trust, or possibly even your children are listed as a beneficiary of your retirement account. In some cases, an IRA Trust may be the best bet to protect a tax-deferred or tax-free inheritance.
- Consider Trustees for Minor Children.Leaving financial resources and property to minor children is typically handled through a trust. To administer the trust, appoint a succession of individuals whom you know to be honest, responsible, and good with spending decisions. Talk with them before nominating them, and make sure they understand your wishes and plans in establishing the trust.
- Plan for Your Child’s Education.Now is the time to start saving to ensure your child gets the education he or she deserves. There are many different investment choices available, and some of the easier choices may have some severe drawbacks. Discuss all your options with an experienced professional before you invest.
What To Do Next:
Estate planning can be deceptively complex. Not only do state and federal laws change, but every family situation is different. Planning choices have profound tax and family relationship implications; and, not having a plan in place is worst of all.
The FourFront Group offers clients a no hassle estate planning strategy meeting. During and after the meeting, your FourFront advisor will guide you through a plan to outline and help you achieve your goals and put your fears to rest. Ultimately, FourFront Group provides peace of mind for their clients and client’s loved ones. Just call our office at 732-444-2345 ext. 119 to schedule a planning strategy meeting.
This article was originally approved for use in 5/18 as PPG-127413 and certain information presented may have changed. For more current information please contact a financial professional with FourFront Group.