Bringing a child into the world is a beautiful life event, and when it happens unexpectedly, it can lead to a whirlwind of emotions and adjustments. Amid the joy and challenges, it’s vital for expecting California parents to consider the future, both for themselves and their newly expanded family. Estate planning, often viewed as a concern of the elderly or the wealthy, takes on a new significance when an unexpected child enters the picture.
Prioritize guardianship
One of the most critical decisions for parents is choosing a guardian for their child in case both parents pass away. In the case of an unexpected child, this choice may not be obvious beforehand. Take the time to discuss this matter with your partner and decide on someone who will provide the care and support your child deserves.
Update beneficiaries
If you have life insurance policies, retirement accounts or any other assets with designated beneficiaries, review and update them to include your new child. This guarantees that your child is provided for even if the worst were to happen.
Draft a will
If you don’t already have a will, now is the time to create one. A will outlines how your assets should be distributed, who will be your estate’s executor and who will care for your child. Even if you have a will in place, review and update it to include your unexpected child.
Consider a trust
Trusts can be valuable estate planning tools for managing and protecting assets for minor children. They offer more control over how and when assets are distributed, which can be particularly beneficial if your child is not yet old enough to manage their inheritance.
Plan for financial security
An unexpected child means revisiting your financial plans. From education expenses to basic needs, ensure your estate plan takes into account your child’s financial security as they grow up.
Communicate with relatives
Don’t leave your loved ones in the dark about your estate plans. Communicate your decisions and intentions with family members, guardians and anyone else who needs to know your plans.
Safeguard your child’s needs
In the midst of sleepless nights and diaper changes, estate planning might not be high on your list of priorities. However, taking the time to address these matters early on can offer peace of mind. By putting in the effort now, you’re protecting and caring for your child well into the future.