Don’t assume that estate planning is something you’ll do when you are a grandparent or after you retire. Many people do put it off until then. But the truth is that you might need to create a plan much sooner than you expected.
For example, one of the best times to create an estate plan is if you just had a new child. There are many ways in which this can benefit your child and help you as a new parent. Even if you assume that your family won’t be using that estate plan for decades, you can always update it, so there’s no harm in making it early and giving yourself that peace of mind.
Putting your assets in a trust
For example, if you were to pass away while you still had a young child, you may not want them to inherit their money when they turn 18 years of age. However, you still do want to leave your assets to them. A solution may be to put the money into a trust that can hold it for them until they are older. You can also use the trust to dictate that the money is used for specific purposes, such as paying for your heir’s eventual college education.
Deciding on a guardian
Another thing to consider is that your child would need a guardian if he or she did not have a parent, and it can often be difficult for family members to figure out who should provide this care after the fact. Doing so in advance allows you to name the guardian and choose this person yourself. This can really give a new parent a feeling of stability and peace. You know that your child will be taken care of.
As you make your estate plan, carefully think about how it’s going to impact your child’s future and what steps you can take with that future in mind.