Estate Planning for New Parents

The early months with a new baby can be challenging. You might be working on less sleep than you’re used to, making plans for childcare and figuring out your little one’s schedule and personality. Once those kids start to grow, every day can feel like chaos as you juggle the many responsibilities of parenthood.

It might be tempting to put it off until you feel more in control, but estate planning should be a top priority when you have young kids. From wills to guardianship, here’s what you should know.

Talk to Farm Bureau if you’d like help preparing for your child’s future, from life insurance to financial considerations for new parents. 

Estate Planning for Parents      

Estate planning is a way for you to share how you want things handled if you aren’t able to make decisions or you pass away. There are several documents that make up an estate plan and cover different aspects of your life.

You may want to put these estate planning components in place for your growing family.

Will

Your will outlines how your assets will be distributed if you die. If you don’t have a will, now is the time to put one in place to help protect your growing family. If you have a will, you’ll need to update it to include your new baby. 

Guardianship

You may feel overwhelmed thinking about your baby being raised by someone else. However, if you don’t name a guardian, the state where you live might decide who takes responsibility for your child or children. To keep that from happening, ask a trusted family member or friend if they’re willing to take on the role of guardian, and document your agreement as part of your will. 

Power of Attorney 

A power of attorney names someone who can sign documents on your behalf if you aren’t able to. A durable power of attorney is a similar document that stays in place even if you become incapacitated or can’t sign for yourself for some reason, such as deteriorating health.

Life and Disability Insurance

If your income disappeared, how would that affect your family? Disability insurance and life insurance help replace that income and give your family a financial cushion they can count on.

Trust

A trust can help ensure that your assets are distributed the way you want. It can also help lower the tax bill your estate faces and help you meet certain goals. 

Beneficiaries

Even if you have a will, it’s important to update documents like your life insurance policy and savings and investment accounts so your new baby is included. Be sure to update your beneficiaries if you have additional children.

Digital Estate Plan

A digital estate plan brings the protections of an estate plan to your online life. It’s a plan for your accounts, email, passwords, social media and subscriptions.

Prepare for Your Family’s Future

At Farm Bureau, we understand that taking care of estate planning can feel overwhelming when you’re juggling all the responsibilities of parenthood. We can help you get started, putting the basics of life insurance and disability insurance in place, then broadening your protection so you can feel more confident in your future. Reach out to Farm Bureau and review your needs and goals with an experienced professional.