When you have a new child in Oregon, you have to start thinking about their future. This includes creating an estate plan to protect your child in case something happens to you. Below are some primary considerations.
Who will be the child’s guardian if you die or you become incapacitated
You need to choose someone who will be responsible for your child if something happens to you. This person should be someone you trust and who has the ability to care for your child both physically and emotionally. You can name one or more people as guardians in your will.
If you don’t have this estate planning document, the court will decide who gets custody of your child if something happens to you. If you want to make sure your child is placed with someone specific, it’s important to have a plan in place.
How your assets will get distributed
This includes things, like your home, your savings, and any other property you own. You can leave specific instructions in your will for how you want these things to get handled. You wouldn’t, for instance, want your child to inherit your debt.
You can also set up trusts to hold assets for your child until they reach a certain age or milestone. This can be a good way to make sure the money is typically used for its intended purpose, like education expenses.
Whether beneficiary designations are updated
When you get a new child, you need to make sure your beneficiary designations are up to date. This includes things like life insurance policies, retirement accounts, and bank accounts. If you don’t update these, the money might not go to the people you want it to. In many cases, your assets or finances may go to your next of kin if you fail to do that, which might not be what you want to happen.
Making a plan for your child’s future is one of the most important things you can do as a parent. It can give you peace of mind knowing that your child will be taken care of if something happens to you.