Estate Planning Tips for New Parents
When you welcome a baby, your entire life changes. It’s likely that your perspective on life will also change a lot in the months and years to come. In a time of celebrating new life and possibilities, it’s common not to even think about estate planning. However, you have to protect your family’s future—regardless of what that future looks like. With the help of an Oklahoma City estate planning lawyer, you can make sure that your new baby is protected no matter what comes their way. Call Entz Burton & Associates at 405-773-9800 to set up a time to talk about your estate planning needs.
This is one of the most important times to look at your estate plan or create one if you don’t already have one. There are many other times when it’s crucial to revisit or update your documents. People often review their estate plans every time they add to the family, whenever someone leaves the family via estrangement or death, when major assets are acquired or disposed of, and when there’s a major shift in family relationships.
Learn About the Benefits of a Will
For many new parents, a will is the very first step they take in their estate plan. Not only is it the most widely known type of estate planning document, it also serves your needs in a variety of ways. Most importantly, it allows you to designate a guardian for your minor children. Without a will, the court will generally appoint a close family member, regardless of whether or not they are the most suitable person for the role.
A will is also an easy way to outline how you want your assets to be distributed when you pass away. This is a top priority for new parents, who often want to guarantee that their young child is financially secure in any situation.
Additionally, a will helps you avoid dying intestate. Intestacy laws dictate what happens to a person’s assets if they pass away without a will. The intestate laws in Oklahoma may or may not align with your priorities, but if you die without a will, they will dictate how your assets are distributed.
Consider Establishing a Trust
A trust is another useful estate planning tool, particularly for those with specific wishes regarding their assets or high-value assets they want to protect. Why is this relevant for parents of young children? A trust can determine how and when a beneficiary receives their assets. Should you pass away while your child is young, you likely don’t want their guardian to receive the full value of their share of your estate. You also probably wouldn’t want your child to get full access to their assets upon turning 18. There are many types of trusts, allowing you to customize how and when assets are given to beneficiaries. Trusts are also private, so the details of your asset distribution stay confidential.
Choose a Guardian for Your New Baby
This is undoubtedly one of the most important decisions you make during your estate planning journey. There are lots of factors to consider, and you may want to discuss your options and reservations with your estate planning lawyer. Some factors to discuss include:
- The guardian’s values and beliefs: You’ll likely want to choose someone with the same core beliefs and values as you, so they can encourage those same beliefs in your child as they grow up.
- Their location: Ideally, they’ll live near your surviving family members to preserve their relationship with your little one.
- Their stability: The guardian you choose will likely receive some of your assets to cover the cost of raising your child. Ensure you choose one who can be trusted to use those funds wisely and appropriately.
- Willingness and ability to step up as guardian: It’s crucial to discuss this in-depth with the potential guardian.
Make time to talk about these and other options with an estate planning lawyer. Your child’s future and financial wellbeing must be handled with the utmost care. Just knowing that everything is in order can give you peace of mind.
Ready to Start Your Estate Plan? Call Entz Burton & Associates Today
Our team of estate planning attorneys are ready to learn more about what matters most to you and create an estate plan that mirrors your priorities. Let’s talk about what comes next—reach out online or call us at 405-773-9800.
Attorney J. Michael Entz at Entz Burton & Associates is an experience lawyer in estate planning law, business formation and asset protection serving the families in Oklahoma City and Weatherford office.
