If you have recently become a parent for the first time, it is likely that you will feel slightly overwhelmed by the range of responsibilities that you now have. Like many new parents, you will probably have a new perspective on the future. You will want to make sure that your child is cared for and protected, no matter what the future brings.
This is why many new parents decide to look into planning their estate for the first time. This can feel very satisfying, because you will be safe in the knowledge that your child will have a support plan in place even if something unexpected happens. Estate planning for new parents can be overwhelming, however. It is important to read about how the process is initiated so that you are equipped to make wise choices.
Where do I start when creating an estate plan?
The first thing you should think about is creating a will. In a will, you can specify certain wishes, such as who you would like to be the guardian of your child if you pass away. This can prevent a situation in which the courts determine a guardian for your child, and it can give you valuable peace of mind.
Once you have set up a will and named your beneficiaries, you may want to start thinking about setting up trust accounts. This can help you from a tax perspective, and maximize the amount that your beneficiaries will inherit from you.
You will also need to specify an executor of your estate. This should be someone that you trust, because they will have the responsibility of overseeing the probate process and distributing your assets.
Many people also decide to create an affidavit that outlines their wishes in regard to funeral arrangements. This can help your family to know how to make arrangements, removing some of the decision-making burdens from their shoulders.
If you are new to estate planning, it is a good idea to take your time and to approach the process with an open mind. Planning your estate early in California can be beneficial from both an emotional and a financial perspective.