Learning that you’re going to be a new parent is exciting!. One of the first things you will want to do is to plan for the future. Planning your Maryland estate should be one of your top priorities as you will want to make sure your child’s future is secure.
Create a will
Part of your estate planning should include a will. A will is a legal document that explains your wishes regarding who will inherit your property and assets once you die. As a new parent, you will want to leave much of your property and assets to your child. However, your will can also name a trusted person you will want to serve as guardian to your child in the event of your death. It can prevent an estranged family member from being named as your child’s guardian.
Create powers of attorney
There are two types of powers of attorney you can create as part of your estate planning. A financial power of attorney is a person who can manage your financial affairs, pay bills and make decisions about your property.
A health care power of attorney is a trusted person who makes all of your medical decisions on your behalf if you are suddenly incapacitated and cannot make them yourself.
Create a trust
When you add a trust as one of your estate planning documents, you can protect your child. A trust can make sure your child will receive an inheritance you leave for them in the event of your death. It can hold any property and assets you want to leave them.
Update your beneficiaries
As a new parent, you will want to immediately update your beneficiaries to include your child. This can ensure that your child will receive your 401(k) or IRA and life insurance benefits when you’re gone.