Carlsbad CA Estate Planning

Planning for a First Child

First-time parents are stereotypically known to be a nervous group. That is understandable. Bringing a new life into the world that you are responsible for, is a daunting task for even the most financially secure and emotionally stable people.

It is not easy being a parent and it is anything but cheap. Parenting a child costs a lot of money in today's world. It requires careful planning.

Recently, Wealth Management outlined some financial planning advice for new parents in "Six Financial Planning Steps for Expecting Parents."

All of the steps listed in the article are important and worthy of consideration for new parents. However, the last one is of particular importance, because it is the one that is most often forgotten.

New parents need to get estate plans.

It is through estate planning that parents can prepare for the worst case scenario if something happens to them, the parents, before their children reach adulthood.

It is in estate planning that guardians are nominated for minor children.

It is also through estate planning that financial arrangements are made to make sure that minor children have the resources needed for their care, if something happens to the parents.

If you are expecting a child, make sure you do not neglect to see an estate planning attorney so you do not have to worry about what will happen to your child, if something happens to you.

Reference: Wealth Management (March 31, 2017) "Six Financial Planning Steps for Expecting Parents."

Estate Planning Considerations for Parents with Young Children

If a parent passes away, the minor children are not going to magically be able to take care of themselves. That only happens on TV and in movies. It is also not an automatic guarantee that a family member will be able to adequately care for the minor children.

Consequently, parents must make proper plans for the care of their minor children if something happens to the parents.

How is that planning done? In an estate plan.

Recently, Forbes posted some estate planning considerations for parents in "Will Your Estate Plan Truly Take Care of Your Kids?" including:

• Figure out who you would want to be the guardian for your children. It should be someone who is capable, financially trustworthy and willing to care for your children.
• Think about how your children will be able to survive financially. You might consider purchasing life insurance or setting up a trust.
• If you do leave money for your children, make sure your designated guardian has the ability to manage that money.
• Ask if your designated guardian has ever filed for bankruptcy. If they have, they might not be eligible to be the guardian as they might be unable to get bonded for it.
• If your children have special needs, make sure the guardian knows how to handle those needs.
• Ask if an out-of-state guardian might move to your state. Doing so could lessen the disruption in the lives of your children.

A qualified estate planning attorney can help you navigate these key consideration and others.

Reference: Forbes (June 27, 2016) "Will Your Estate Plan Truly Take Care of Your Kids?"