Tips for estate planning for new parents

On Behalf of | Jul 28, 2023 | Estate Planning

Estate planning in Michigan is a critical topic for new parents. After all, they will need to think not only about their financial security but also about their children’s future. Creating a plan now can ensure that your wishes for your children are carried out if something happens to you or your partner. Here are some tips for creating an estate plan that provides security and peace of mind for you and your family.

Make sure you have a will

A will is a legal document allowing you to designate who will receive and manage your assets upon death. This includes naming guardians for minor children and specifying how their care should be provided.

Create an advanced healthcare directive

This document allows you to specify what types of medical treatments you would or would not want to receive if you become incapacitated. It can also designate a person who will make medical decisions on your behalf. An advanced healthcare directive helps protect you and your family from the uncertainty of medical emergencies.

Set up beneficiary designations

Beneficiary designations are attached to specific accounts, such as life insurance policies or retirement plans. If you do not have a will, the assets in these accounts will be distributed according to the beneficiary designations. This is why it is essential to ensure that your beneficiary designations are up to date and accurately reflect your wishes during estate planning.

Name an executor

An executor is someone who oversees the administration of your estate after you die. This person will be responsible for carrying out your wishes as stated in your will and ensuring that all necessary paperwork is completed.

Create a power of attorney

A power of attorney allows you to designate another person to make decisions regarding your healthcare or financial matters if you cannot decide for yourself. This document should be created and signed while you are still legally competent, and it is important to choose someone who will act in accordance with your wishes.

Create a trust

A trust allows you to manage your assets while providing for your loved ones after you’re gone. A trust also provides some degree of asset protection from creditors or potential lawsuits.

Establishing an estate plan can be daunting, but it doesn’t have to be overwhelming. Taking the time to create and maintain a comprehensive plan can provide peace of mind and security for both you and your family. With some planning, you can ensure your wishes are fulfilled upon death.