Learning that you’re going to be a parent is exciting for any Illinois resident. Your priority now lies in ensuring that you do everything possible to care for your bundle of joy. Estate planning is one of the best ways to start.
Create a will
Your last will and testament is a legal tool that lets you decide how you wish your estate to be handled when you’re gone and who should serve as executor. You can also name a guardian for your child if you unexpectedly pass away while they’re still a minor. This person will also oversee any assets that you want to leave to your child when they’re still too young to inherit them.
Buy life insurance
Purchasing life insurance is a big part of estate planning as a new parent. You will want to choose a plan that ensures that your child will be financially taken care of in the event of your untimely death. Life insurance can make a difference in whether your child is able to attend college in the future.
Create powers of attorney
Powers of attorney are legal documents that allow you to name agents who handle certain matters on your behalf if you’re incapacitated. There are financial and medical powers of attorney; your agent for the former pays your bills and debts while the agent for the latter ensures that your wishes for your healthcare are met.
Establish a trust
Many parents establish trusts for their children. Depending on the type you create, any assets held within can bypass probate and estate taxes and go directly to your child once they reach the age of majority. The guardian you select to care for them or a trustee oversees the trust.
Having an estate plan can ease your mind when you have a child. It ensures they will be in good hands.