If you count yourself among the many people across New York who have recently become first-time parents, congratulations. Your may feel consumed with learning the ropes of your new lifestyle, and you may, too, suffer from sleep deprivation as you navigate the waters of parenthood. As a new parent, you face unique considerations with regard to estate planning, and many people choose to create or revisit their estate plans after giving birth to a child. At the law offices of Joseph A. Ledwidge, P.C., we understand the estate planning needs of new parents, and we have helped many clients facing similar circumstances make plans for the future.
Per Nerdwallet, one of the estate planning steps you may want to consider taking after having a child is designating beneficiaries for assets that might include life insurance policies, retirement plans and the like. Even if you already named a beneficiary for these and other assets, your needs or desires may have changed now that you have a son or daughter of your own.
You may also want to consider leaving your child assets in a trust. Doing so has several benefits. First, by placing your assets in a trust, they essentially skip the probate process, which can save your loved ones time and money later on. Leaving assets to your loved ones in a trust also benefits them in terms of taxes, because it reduces the amount of tax assessed on the estate.
Once you become a parent, it also becomes increasingly necessary that you designate someone who can serve on your behalf in certain situations. You may want to give someone power of attorney, which means they can make certain decisions on your behalf if you become incapacitated. You may, too, want to take this time to appoint someone executor over your estate, so that he or she can see that your debts are paid, and your wishes, fulfilled, down the line. More about estate planning is available on our web page.