If you have recently welcomed home a new baby to your family, you are probably overwhelmed with life in general at this point. No one really understands how much the addition of a baby changes everything until it actually happens. Although you may be focused on simple problems like how to function on four hours of sleep, make sure that you don’t put off making important changes to your estate plan now that baby has expanded your family to three.
One of the first things you will want to do is to update your Last Will and Testament. Along with adding baby in as a beneficiary, you will want to sit down and choose someone to nominate as guardian in the unlikely event that one is needed at some point. Failing to nominate one in your Will means that a judge will have to make the best decision possible absent your input should the need ever arise.
Along with changes to your Will, now may be the time to review and increase life and disability insurance policies. In addition, you may wish to sit down with your estate planning attorney and create a basic trust. Because baby is too young to inherit directly, a trust if often the best solution to protect any inheritance until your child is mature enough to handle the money outright.
Finally, if your child is a special needs child, it is never too early to start special needs planning. Should anything happen to you, an inheritance can disqualify your child for many much needed assistance programs such as Medicaid and SSI.
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