When you become a first-time parent in Tennessee, you may or may not already have an estate plan in place. If you do, you may need to update it once you have a child of your own to look after, and if you do not already have an estate plan in place, this is a good time to create one. James H. Snyder, Attorney at Law, is well-versed in the important estate planning steps new parents often take to protect their child’s interests, and he has helped many people in your shoes navigate this and many similar estate planning issues.
According to NerdWallet, while some people do forgo estate planning, doing so is almost always a bad idea, because it can leave your loved ones scrambling and unsure of what to do after your death. They may, for example, have to spend considerable time going through probate, and they may, too, have to pay higher taxes on your estate than they might otherwise. As a new parent, though, it is particularly important that you make your wishes known with regard to your estate, and there are a few things to consider doing that might prove particularly beneficial.
First, unless you already have, you should name someone executor over your estate. This person has the responsibility of paying off your creditors and otherwise overseeing your estate, and he or she can do so on behalf of your child once you are no longer around or able. You may, too, need to update the beneficiaries you named on certain parts of your estate plan, or conversely, name beneficiaries for certain assets if you have not already done so.
For example, you may want to list your new child as a beneficiary on your retirement accounts, life insurance policies and so on. You may, too, want to consider creating trusts that may ultimately go toward your child, and there are a number of different types of trusts to consider utilizing. You can find more about estate planning on our webpage.