Bringing a child into your family will change your life in many ways. From your finances to your sleep schedule, you’ll soon find that things will never be the same. However, there’s one giant detail hanging over your head: Your estate plan.
When you add a child to your family, either through birth or adoption, you must quickly review your estate plan for potential changes. There’s a good chance there are several things you must do.
To start, consider if you want to name your child as a beneficiary. For example, if you’ve done this with your other children, you probably want to stick with this trend. Another detail to consider is naming a guardian for your child. This is the person who would raise your child if you and your spouse are unable to do so, such as the event of an untimely death.
If you don’t name a guardian, the court system is responsible for making this difficult decision. And while they may make the right choice, it’s not a risk you want to take. Including this condition in your estate plan will give you peace of mind.
You have a lot to do after adding a child to your family, but a review of your estate plan should be at the top of the list. As you move through the process, make note of any potential changes that could benefit you, your new child and/or your family as a whole. Once you do this, you’ll feel more comfortable with the current standing of your estate plan and what will happen in the future.