If you live in Nevada, don’t forget to add an unexpected newborn to your estate plans. After all, if you’ve already included the baby’s siblings, you don’t want to leave the newcomer out of the preparations inadvertently. Here are some of the things to consider.
Update your will
It is a common practice for parents to designate a legal guardian who will care for their minor children in case both spouses die simultaneously. When the new baby arrives, you should take a minute to review your will and decide whether the current designee is still the appropriate choice to raise a young child.
Update your beneficiaries
Many of your financial accounts may have named beneficiaries who will receive their proportional share of the assets after you pass. Add the baby’s name to life insurance policies, investment and retirement accounts, banking accounts and annuities. Avoid making a tragic oversight by accidentally omitting your youngest child from the beneficiary list.
Flexible trust account
If you have a child who is years younger than your other children, their financial needs might significantly differ at the time of your death. For example, the youngest might be in high school while the others are adults with their own families. If you create and fund a trust account for your children, you can appoint a trustee who can disburse funds on an as-needed basis without regard to distributing equal shares to all your offspring. In this scenario, the youngest might receive college funding while the others receive supplemental living expenses.
Remember to include your youngest one in your estate plans. You’ll be forever thankful that you did.