Preparing for a new baby can be an exciting time in your life. However, welcoming a new family member means you’ll need to take a look at your estate and make changes as necessary. If you’re becoming a new parent in Indiana, here are some things to keep in mind when it comes to estate planning.
Go over your life insurance policy
A life insurance policy ensures that your child will be taken care of financially if you pass away before they become adults.
It may be challenging to determine how much life insurance you need when it comes to estate planning, so concentrate on the type of policy that would meet your family’s needs and how long your family will have certain financial needs. This can help you decide if you need a short-term policy or permanent life insurance.
Updating beneficiaries and verifying account ownership
As you’re preparing to welcome a new child, this is a good time to complete the estate planning process by assigning the right beneficiaries and titling your accounts. You will likely want to name your spouse and children as your beneficiaries, but you should never name a child under 18 as the contingent or primary beneficiary on your life insurance policy or investment account. The courts may assign a lawyer to take over the accounts or your child’s other parent can be appointed guardian over the parts of the estate that will belong to your children when they become adults.
Organizing your finances and making sure your children will be taken care of in the future can give your family peace of mind and make the arrival of your new child even more joyous.