Get Ahead in Your Personal Injury Case

3 Things to Do After Welcoming Your First Child to the Family

12 December 2015 by Kenneth Pierce

Becoming new parents is a very exciting life event for any couple, but adding a child to the family also brings forth extra responsibilities. There are several important steps parents should take to ensure the well being of their child in the event of the death of one or both parents. Take the following steps upon becoming a parent:

Purchase Life Insurance

A life insurance policy helps financially protect a child if one or both parents pass away before the child becomes an adult. It is a good idea for both parents to have a life insurance policy, even if only one is the main bread winner for the family. Since most couples have children when they are young and relatively healthy, purchasing term life insurance is typically the most affordable option. When deciding on how large of a policy to buy, consider how large of a mortgage you have if you own a home, as well as how much it costs each month to maintain your family's current lifestyle.

Name Guardians

When welcoming a new child into the family no parents want to think about their own deaths, but for your child's protection, it is important to legally name a guardian or guardians who will care for your child if he or she becomes an orphan before reaching adulthood. Hopefully your child will never need to live with the appointed guardians, but choosing guardians is a very important decision that should not be taken lightly. Choose people who share your values and agree to accept the responsibility of caring for your child if you and your spouse are not around to do so. 

Establish a Will or Trust

Establishing a will or trust is an important estate planning step that will allow you to assign beneficiaries to receive your assets after your death. Most people name their spouse as their beneficiary, but you can also include your new child as an alternate beneficiary who will receive your assets if your spouse dies before you. If you and your spouse already have wills or trusts, have your lawyer update the document after a child is born or adopted. The decision to establish a will or a trust will depend on your unique financial situation; if you have a large estate when you welcome your first child into the family, you may want to choose a trust for tax purposes and to avoid probate court. An estate lawyer, such as  Lisa Cappolella Attorney at Law, can help you decide which option is best for you.

Share

Search