Whether you’re giving birth to a child soon or planning on adoption, you may find it challenging to do everything necessary to prepare for your new family addition. While every child and family dynamic is unique, there are some estate planning tips you can keep in mind to secure your child’s financial future. Here are some suggestions to consider if you’re a Texas resident.
Create living documents
Just as a flight attendant advises you to place your own gas mask on your face before helping others, you should make sure your health and well-being arrangements are intact before you make these efforts for your loved ones when it comes to estate planning. Living documents are a way for you to make sure you’re cared for if you’re unable to make health decisions for yourself. You may want to set up a healthcare proxy and power of attorney so your loved ones know what your healthcare preferences are if you become incapacitated.
Select a guardian and trustee
Once you have children in your household, you may want to come up with a plan to ensure these children are cared for if anything happens to you. Assigning a guardian and trustee during estate planning means you’ve selected someone to play a parental role in your child’s life if you pass away.
The guardian will be responsible for deciding where the child will attend school, church, and social activities. The trustee you select for your child will serve as your son or daughter’s personal treasurer. The trustee will see that the money you’ve set aside for your children is used to take care of their basic needs or invested in the organizations of your choice.