New parents in Florida have many things to consider, from changing diapers to getting some sleep. Estate planning should also be a major priority. Writing down their last wishes is vital to ensuring their growing family is cared for when they die. The birth of a new child is an excellent time for parents to think about what they want to be left behind for their spouse and their children after they are gone.
Estate planning is not just for the wealthy
When some people hear the word “estate,” they might think about properties, mansions, trust funds, and large bank accounts. However, an estate is the assets a person leaves behind when they die, be it their vehicle, home, bank accounts, or 401(k).
When new parents create an estate plan, they are ensuring that their assets will go to who they want them to go to, that outstanding debts are paid, and the surviving family members are taken care of. Without an estate plan, the estate typically has to go through probate, which can be expensive, time-consuming, and a hassle to a grieving family.
Plan to ensure that your children are taken care of
Although it is not something most people want to think about, an estate plan allows parents to ensure their child is cared for physically and financially if both parents pass away. If parents don’t plan, Florida state law regarding custody could kick in. This could mean an orphaned child ends up living with relatives that the parents have not spoken to in decades or even find themselves in foster care.
An estate plan could include the following:
- Naming a guardian or trustee for your children
- Choosing an executor of your estate
- Instructions regarding who inherits your assets
- Financial power of attorney
- Healthcare power of attorney
Parents with children that have special needs or disabilities need to take estate planning seriously.
Once a new parent creates an estate plan, it is good for them to revisit it regularly. Creating an estate plan can give new parents one less thing to worry about.