Sometimes, life for people in Maryland comes with surprises. One of these surprises is an unexpected pregnancy. There are many ways parents prepare for a new baby. During this time, it’s smart to take a second look at your estate plan.
Guardianships
A parent never wants their child to grow up alone. That’s why many adults name guardians for their children. When you have multiple children, you may appoint the oldest child to be the legal guardian of their siblings. But it’s critical to avoid forgetting naming a guardian for your youngest child. Not completing this step could leave a court with the authority to decide this child’s guardian.
Beneficiaries
An essential part of the estate planning process is naming beneficiaries. Your beneficiaries can receive money and other assets you leave behind. But don’t let a busy life lead you to forget about naming a new child as a beneficiary. All of your children deserve to be provided for.
Opening a trust
Many parents open trusts in their children’s names for greater control over asset distribution. A trust also allows you to determine how and when beneficiaries receive their inheritances. For instance, parents of children with special needs can distribute money through a special needs trust without jeopardizing this person’s government benefits. Depending on how many children you have, opening a pot trust is another good idea. This type of trust works best when your beneficiaries have differing levels of financial stability.
As any parent knows, there’s almost nothing more exciting than bringing home a new baby. But don’t let this excitement lead you to forget about updating your estate plan to include your beloved new child.