Four Estate Planning Tips For New Parents In Massachusetts
Are you a new parent or soon-to-be new parent in Massachusetts? It is an exciting time that can also be stressful. Estate planning may not be at the forefront of concerns. At the same time, it is crucial that new parents put an estate plan in place. It does not have to be complicated to get started. At Fisher Law LLC, we help new parents solve estate planning issues. Here, our Boston estate planning lawyer highlights four estate planning tips for new parents in Massachusetts.
Estate Planning Tip #1: Appoint a Guardian (and Alternate) for Your Child
While it is not something that any parent wants to think about, it is crucial that you are fully prepared in case something happens to you and/or your partner. In Massachusetts, you can name a guardian and alternate guardian in your Will. You should do so to ensure your preferences are legally documented and can be carried out without major problems. Make sure to have an open conversation with the potential guardian about financial expectations, daily routines, and long-term decisions for your child’s future. Do not pick a guardian who is unwilling to perform the duties.
Estate Planning Tip #2: Review Life Insurance and/or Beneficiary Designations
New parents often need additional financial protection. Life insurance can replace your income and cover childcare, education, and living expenses if you pass away prematurely. Determine the appropriate coverage amount by factoring in costs like housing, daily necessities, and future schooling. Be sure to list the trust for your child as a beneficiary, if appropriate, so that funds are distributed according to your instructions rather than outright to a minor. Obtaining sufficient life insurance coverage is often one of the best estate planning strategies for new parents.
Estate Planning Tip #3: Consider Setting Up a Trust
A trust can help to manage assets for your child if something happens to you and your partner. It may be a sensible estate planning option. In Massachusetts, a revocable living trust can simplify the transfer of property, reduce probate expenses, and provide continuity in asset management if you become incapacitated. Notably, it allows you to set conditions for how and when your child receives inherited funds. For example, you can distribute money at specific ages or for specific purposes.
Estate Planning Tip #4: Make Sure Your Health Care Documents are Up-to-Date
Along with choosing guardians and managing assets, drafting thorough health care directives is crucial. In Massachusetts, you can create a Health Care Proxy to designate a person who can make medical decisions for you if you become incapacitated. It is also wise to have a HIPAA authorization in place so that your designated agent can access vital medical information without roadblocks.
Speak to Our Boston, MA Estate Planning Attorney Today
At Fisher Law LLC, our Boston estate planning attorney has the knowledge, skills, and legal experience that you can rely on. If you have any questions about estate planning as a new parent, please do not hesitate to contact us today for a confidential consultation. We provide estate planning services to people and families throughout the Greater Boston metropolitan area.
