Becoming a new parent is exciting and overwhelming. While you might be completely focused on the daily care of your child, it is important to think about the future. It is time to schedule an appointment with an estate planning lawyer in Greensboro.
Will – Your last will and testament makes the probate process simpler as you can instruct which beneficiaries receive which of your property. While this is important, there is another critical purpose of a will that is meaningful to new parents, as you can use your will to designate who will be your child’s legal guardian if something happens to both parents. This can prevent the state from taking custody of your child or a drawn-out guardian case in court.
Living trust – Minor children cannot receive and manage a full inheritance from your will, and the court might appoint someone to manage the funds. The problem is, can you trust that person to act in your child’s best interests? To have better control over how the funds for your child are managed, you might want to set up a living trust with clear instructions and a designated trustee.
Beneficiary accounts – Your life insurance policies, bank accounts, retirement accounts, and other financial accounts should allow you to name a direct beneficiary, which eliminates the need for these funds to pass through probate or a trust. While your spouse might be the primary beneficiary, you might want to name your children as secondary beneficiaries. This can help their other parent or legal guardian cover the costs of raising a child if you pass away.