CNN Money: A new baby? Write a will
A new baby? Write a will
First-time parents should name a guardian and make their wishes clear
You just returned home from the maternity ward with your first bundle of joy in your arms and the house is stocked with diapers and baby formula — now’s the time to sit down and draft a will.
While the thought of writing a will and beginning estate planning may not be exactly what you are thinking about whent you bring home baby, its is very important for you and your spouse prepare for your child’s well being in all possible ways. People today are living longer healthier lives, and are less likley to think about becoming ill or incapacitated. Young couples tend to put of writing wills and estate planning because they are already overhelmed by the role of being new parents.
Who will watch over Your Child?
If you pass away without a will - dying intestate - the state that you reside in will decide who takes care of your child. The child is placed in custody of the State immediately proceeding a court ruling of guardianship. When choosing a guardian, think not only about the quality of care provided for your child, but also guardian’s age, health and well-being. While you may emotionally want your parents to care for your child if something happens, your parents naturally may not outlive you or your child.
To get started finding a guardian for your baby, here are some questions to ask yourself from Nolo.com, a self-help law center and legal publishing company on the Web.
- Do you have confidence in the prospective guardian?
- Is your choice physically able to handle the job?
- Does he or she have the time?
- Does he or she have kids of an age close to that of your child?
- Can you provide enough assets to raise the child? If not, can your prospective guardian afford to raise the baby?
You want to consider selecting more than one guardian to serve specific roles in the care of your child. Assigning care and upbringing to one guardian and financial responsibility to another. It is your duty to your child to pick a suitable guardians that will provide necessary care and be able to work together.
Once you and your spouse have discussed and decided these issues together, you’ll be ready to meet with an estate planning attorney to draft all the necessary documents.
Drafting a will can be fairly simple, depending on the amount of assets you have and how you plan to divide your belongings among your heirs, said Mike Janko, executive director of the National Association of Financial and Estate Planning (NAFEP).
Typically, each spouse leaves all of his or her belongings to the other spouse in separate wills.
If you wish to leave valuable property or your investments to your child, you should consider setting up a living trust with your child as the named beneficary. The property in the living trust would be protected and preserved for your child. You may establish when or what an age the child may regain full control of that property, also you can stipulate how the child can spend the money.
Before you make you meet with your estate planning attorney, get out the calculator and figure out how much you and your spouse have. Estimate your assets by adding up the worth of your material property including your home, furniture and car, plus your savings and retirement accounts, then subtract your debt.
Discuss with your estate planning attorney appropriate planning levels to plan for your future wealth while staying within your current financial needs.
Where to go
If you are in the Memphis or North Mississippi area, please call us at 901-754-1340 or email to schedule an initial consultation and planning session. If not, check with the American Bar Association to find attorneys with expertise in probate and estate planning in your city.
