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How should I update my estate plan after having a baby?

On Behalf of | Mar 6, 2023 | Estate Planning

Describing life as hectic after becoming a parent is one massive understatement for most parents. Besides adjusting to life with a new member of the household, there are a number of concerns you need to start thinking about. Which school will your child attend? What hobbies would you love them to adopt? 

Unfortunately, it is not uncommon for most new parents to overlook the topic of estate planning. And this can be a costly mistake, especially if something were to happen to you. Here are three important updates that you need to make to your estate plan when you become a parent (through birth or adoption).

Consider naming a guardian for your baby

Life is full of uncertainties. What happens if, due to death or incapacitation, neither you nor your co-parent is able to care for your little bundle of joy? Most likely, your parents, uncles, aunts or close family will want to step in and adopt your baby. But what if they cannot agree on who will assume this noble responsibility? Well, this is where guardianship comes in. With a clearly written set of instructions, you can avoid this far too common, yet unnecessary, situation. Besides, you will have peace of mind knowing that your child will be safely brought up by someone whose values you approve of. 

Review your asset distribution

This is pretty straightforward. Most parents want their hard-earned assets to pass down to their children. If you already have a will in place, this is the time to revise it with the goal of including your new family member as a beneficiary. If you do not expressly set aside assets for your newborn, they might get nothing should something happen to you. Do not leave anything to chance.

Whether it is your first or fifth time becoming a parent, the birth of a child, just like any other life-altering event, is a great time to review and update your estate plan. Find out how you can update your estate plan to reflect your new status as a parent.