As an attorney and new mother to three-month-old Sullivan, I began to think about his future as soon as he was born. While my husband and I gazed at him with exhaustion and adoration between (seemingly endless) feedings and diaper changes, I wondered, “How can I make sure he is taken care of if something happens to us?” “Who would raise him?” “How can we protect him financially?”
New parenting is filled with new responsibilities, including preparing for your child’s future. Although my child is young, I know it will not be long before he is a walking, talking adult. Here are the steps I took after I became a new mom to prepare for my baby’s future initially:
Made a plan for who will be the guardian of my child. Who will be responsible for my child if something happens to me and my significant other?
Established a Trust. This allows me to ensure that my assets and money go to my child and provides the terms by which they can be used.
Reviewed current beneficiary designations of existing retirement accounts and other investments. Welcoming a new child is a perfect time to set up your designations how you want them.
Set up a 529 Plan for future education. Thanks to the SECURE 2.0 Act, any unused funds in the 529 Plan can be rolled into a Roth IRA for the beneficiary (subject to some conditions). A great way to help your child set up for their retirement.
As busy parents, setting up an estate plan often finds itself low on the priority list, even though it is of great importance. For more information on setting up your estate plan, contact Morgan Schweighoefer at 216-621-7860 or [email protected].