Welcoming your new child into your Michigan home likely represented one of the biggest and most exciting events of your life to date. But by now, reality has likely set in and your find yourself engaging in numerous day-to-day tasks in your never-ending desire to love and protect your new helpless little one.
Kiplinger explains that there is more to loving and protecting your newborn, however, than just feeding, changing, rocking and talking to him or her. Have you and your spouse established an estate plan to provide for him or her in the event you cannot do so yourselves?
Estate plan considerations
Your estate plan likely should include the following:
- Your Last Will and Testament and that of your spouse that, among other things, names the person(s) who you desire to care for your child should both of you die in a mutual accident or other catastrophe
- A living trust for the benefit of your child
- A special needs trust if (s)he suffers from a birth injury or defect for which (s)he needs ongoing care
You may also wish to establish a tuition plan that you regularly contribute to so that money begins accumulating for your child’s eventual higher education.
Keep in mind that life insurance should also form part of your estate plan. Purchasing one or more large life insurance policies on both you and your spouse represents one of the best and least expensive ways you can fund your various trusts and tuition plans if you name them as beneficiaries of your life insurance policies.
This is general educational information and not intended to provide legal advice.