To Protect A Child’s Future, New Parents Should Prioritize Creation of Estate Plan
Virginia Beach, VA (Law Firm Newswire) January 26, 2015 – ]With a baby on the way, new parents should prioritize making a basic estate plan. An estate plan is one of the most important building blocks for a growing family.
“In the midst of all the other changes associated with becoming a new parent, an estate plan is essential to protect your children in case anything should happen to you,” said Andrew H. Hook, a Virginia estate planning attorney with Hook Law Center, which has offices in Virginia Beach and northern Suffolk.
An estate plan can ensure that children will be provided for in case their parents die. To accomplish this, young parents should buy a life insurance policy. Term life insurance is usually very affordable for healthy, young people. In addition, young parents should name a beneficiary for their retirement accounts. Assets in accounts with designated beneficiaries can be distributed without going through probate.
Parents will also need to appoint a guardian for their children. The guardian will care for the children if both parents are unable to do so. In addition to naming a guardian in their wills, it is recommended that new parents discuss the possibility of guardianship with the guardian they wish to appoint.
A durable power of attorney and a living will can streamline the management of medical decisions and financial affairs in case one or both parents is incapacitated. The durable power of attorney appoints someone to make financial decisions, so that a trusted friend or family member can ensure that the bills are paid and the children are cared for in case of a serious injury or illness. Health care power of attorney, or a living will, appoints an agent to make health care decisions on behalf of an individual.