Important estate planning factors for new parents
September 18, 2017
Though a will can be beneficial after your passing, it may not cover all the areas of your estate. A proper estate plan can help you to take care of your loved ones even after you are gone.
For new parents, this can be especially critical. If you are forming a new estate plan or looking to revise your current one, there are a few things to consider as a new parent.
Guardianship
If you are married, your first thought would probably be that your spouse will care for the children after your passing. However, you should plan for the event that both you and your spouse pass or become incapacitated. The guardian should be someone you trust to care for your child emotionally and physically. In the case the guardian of your choice is out-of-state, you may choose to select a temporary guardian to take care of your child until the full-time guardian arrives.
Executor
You may choose to have the guardian execute your estate as well or designate a separate entity or individual. Michigan legislature in section 700.3705 states how the executor, or personal representative, must act and execute an estate. There are certain responsibilities an estate executor must fulfill, and it is important you understand those responsibilities and select the person you believe would be best for the job.
Asset Transfer
You may select when you would like your child to receive any inheritance you leave. If you would like the executor to release the portion of the estate to your child at a specific age, you may denote this in your estate plan. It is also possible to state whether you would like to be distributed over a period of time.
These are just some of the parts of an estate plan you should consider, especially if you are a new parent. Take some time to review your estate and determine what sections are important to you for the care of your little ones and loved ones in general.