Byron Carlson Petri & Kalb, LLC | attorneys at law

Why new parents need to start planning their estate today

On Behalf of | Jun 21, 2024 | Estate Planning & Probate

As a new parent, you are likely aware of the numerous expenses that come with parenthood, from diapers and daycare to their eventual extracurricular activities and education. But have you stopped to consider how you will ensure your child’s financial security if you are no longer around to provide for them?

Raising a child is a significant undertaking, and the financial burden can be overwhelming. In fact, recent statistics reveal that the average middle-income family can expect to spend around $310,605 to raise a child today. This staggering amount can be a daunting thought for new parents. However, there is a crucial step you can take to ensure your child’s financial security, education and healthcare, no matter what life throws your way: creating an estate plan.

Understanding estate planning

Many people assume that estate planning is only for the wealthy or those in their later years. But the reality is that it is an essential set of legal documents that anyone with dependents needs – and that includes parents of minor children.

Ensuring your child remains safe and cared for

As you plan for your child’s future, one of the most important decisions you will make is choosing a guardian who will care for them if you are no longer able to, whether due to death or incapacity. This person will take on the heavy responsibility of raising your child, ensuring they receive the love, care and guidance they need.

Should you fail to designate a guardian, the court will take on this responsibility. This scenario may lead to unintended consequences, like leaving your child’s future in the hands of someone who may not share your values and priorities.

Protecting their financial security

By establishing essential estate planning tools, such as trusts, you can make sure that your child’s inheritance will remain secured for their future. This forward-thinking planning helps guarantee that your child’s financial security remains on track, even when you are no longer there to guide them.

As a new parent navigating uncharted territories of parenthood, it is essential to think about the future and what you want for your child. While estate planning may not be on your radar now, it is a crucial step in ensuring your child’s well-being, no matter what happens in the years to come.