There is so much to do when you are expecting your first child. You are getting the nursery ready, attending prenatal appointments, arranging for child care and more. It is exciting, but one aspect of parenthood that may have gone unnoticed is the need for an estate plan. Estate planning is not just for the elderly. Young adults with children also need to have a basic estate plan in place.
The basic will
You may be a young adult, but you still have assets to your name. You may have a home, collectables, savings accounts and other valuable assets you want to see passed on to specific individuals. To do so, you will need a will. A properly executed will is a legally binding document in which you make clear how you want your assets to be distributed upon your death.
Name a guardian
Another plus to executing a will is that you can assign a guardian to your child. No one likes to imagine the prospect of passing away before their child is grown. Unfortunately, this does happen sometimes, so it is best to be prepared. In your will you can name a guardian to take care of your child should you and your partner pass before your child is grown. If you do not do so, the court will make this decision, which may or may not be who you would have chosen.
Other estate planning considerations
If you are executing your first estate plan, you may also want to consider a living will, a health care power of attorney and a financial power of attorney. In these documents you can dictate what end-of-life care you want, and you can name someone of your choosing to make health care and financial decisions on your behalf should you become incapacitated. With a solid estate plan in place, you can ensure that your child will be taken care of, and your affairs will be in order, should you unexpectedly pass away.