Couples who are expecting their first child are busy with decorating the nursery and taking childbirth classes. In addition to planning for their financial future, estate planning should be a high priority to-do item. They need to purchase life insurance, set up a college fund, and answer one of the most unpleasant questions of all: What would happen to your child if you both die?
Perhaps a more palatable way to frame the difficult question of what would happen to your child if both parents die is this: “Do you want your in-laws to raise your child?”
That could be the question that drives a couple to meet with an estate planning attorney. According to Investor’s Business Daily in “When Couples Have Their First Baby, Advisors Deliver,” young couples need estate planning, especially when they are expecting their first child. The attorney will help them address guardianship issues, draft a living will and prepare other important documents.
Life insurance and long-term disability coverage become very important. Some folks believe they are covered because they have disability insurance at work. This may not be enough.
Don't let financial stress add to the stress of raising a child. Sit down with a qualified estate planning attorney and go over some of the important issues that now must be addressed as you start your family.
Reference: Investor's Business Daily (September 12, 2015) “When Couples Have Their First Baby, Advisors Deliver”