Welcoming a new child brings unexplainable happiness but also a host of new responsibilities, including planning for their future. Though sometimes misconceived as a tool solely for the wealthy, estate planning is also a vital step for new parents. It provides a structured approach to ensuring your child grows up well, even in your absence.
Where to start with estate planning
Estate planning in New Jersey involves making legal arrangements for the management and distribution of your assets to prepare for the possibility of incapacity or death. Beyond protecting your assets, it can allow you to leave directions and plans for what happens to your children.
To start, you may want to consider the following:
- Create a will: Through this document, you can detail exactly how your assets should be distributed. Additionally, you can appoint a guardian for your child and provide care instructions.
- Name a guardian: Uncertainty can be terrifying, but knowing your child is in good hands can be comforting. Name someone who shares your values and whom you trust will love your child as much as you. Since things may change with your initial choice, consider appointing alternatives as well as specifying anyone you feel is unfit for the role.
- Set up a trust: If you pass away before your child turns 18, a trust can safeguard their inheritance. You can specify exactly when and how your child will receive financial support and name a trustee to manage and control the assets in the trust.
- Establish powers of attorney: This document allows you to appoint someone to make medical and financial decisions on your behalf in case of incapacity.
Plan today and secure their tomorrow
An estate plan is more than a set of instructions and legal arrangements. It can be a declaration of the love you have for your child. The unpredictability of life underscores the importance of having an estate plan.
By establishing an estate plan now, you may gain peace of mind knowing that your child will be cared for, regardless of what may happen.