Before your baby was born, you made a lot of plans for things like the nursery. One thing that some parents don’t think about is setting up an estate plan that ensures the child will be cared for if something happens to both of their parents.
You need to make plans for your medical care and financial decisions if you’re incapacitated. This will enable your loved ones to focus on caring for the child because your affairs are in order. You should have an advanced directive to provide your medical team with instructions. You also need a power of attorney for health care and one for finances so the individuals you name can make decisions on your behalf in those respective areas.
Planning for the unthinkable is also necessary. You should name a guardian for your child in case you and their other parent both pass away. This person should be able to raise them in the manner you would have, and they must be up for the task.
Setting up financial backing for the child is another consideration. Look at the payable on death designations on financial accounts to ensure they will support the child. You can also set up trusts and draft a will that helps to provide for your child.
Remember that your estate plan will only go into effect if both of the child’s parents pass away or become incapacitated. As your child grows and matures, you can modify some aspects of your estate plan to reflect their current needs, so remember to review it periodically.