Estate planning as new parents is time-consuming, but making a plan for your child is important. Michigan families have a tremendous amount to care for and account for. Among the concerns that new parents have are the health, finances, and future of their newborn children. Here are some of the estate planning options that exist.
The younger the better
Estate planning for children can start even before they’re born because it isn’t just about planning for a parent’s death. Estate planning enables you to build wealth to use while you’re still alive. As for children, anything you leave them to inherit is theirs but can’t be possessed until they’re adults in most cases. Creating a plan now that preserves your assets for your children even results in a few tax-havens.
Assets and classes
Basic accounting is what Michigan families need when tallying their assets and possessions. An accountant or bookkeeper has the core skills to help you build your financial portfolio. In this portfolio, everything you own is listed out and given a value. In estate planning, the only things you can leave a child are the possessions you legally own today. Here are some examples of the things to leave your children:
• Real estate
• Investments
• Insurance
• Businesses
• Trusts
Guardianships
The moment your child is born is when guardianship might go into effect. Parents who have the comfort of choosing a guardian, should they become absent in parenting, have flexibility built into their estates. Estate planning takes into account best- and worst-case scenarios. What you plan covers human resources, wills, and money. Deciding on a guardian is to decide who raises your child, disciplines them, and grants or denies their medical care.
Choosing a trustee for an heir can be another important step. These people are selected to manage the assets of a trust until your heirs receive their inheritances.
New parents understandably want to provide the best for their children. Updating an estate plan when a new child arrives is one way to care for their future.