First-time parents are stereotypically known to be a nervous group. That is understandable. Bringing a new life into the world that you are responsible for, is a daunting task for even the most financially secure and emotionally stable people.
It is not easy being a parent and it is anything but cheap. Parenting a child costs a lot of money in today's world. It requires careful planning.
Recently, Wealth Management outlined some financial planning advice for new parents in "Six Financial Planning Steps for Expecting Parents."
All of the steps listed in the article are important and worthy of consideration for new parents. However, the last one is of particular importance, because it is the one that is most often forgotten.
New parents need to get estate plans.
It is through estate planning that parents can prepare for the worst case scenario if something happens to them, the parents, before their children reach adulthood.
It is in estate planning that guardians are nominated for minor children.
It is also through estate planning that financial arrangements are made to make sure that minor children have the resources needed for their care, if something happens to the parents.
If you are expecting a child, make sure you do not neglect to see an estate planning attorney so you do not have to worry about what will happen to your child, if something happens to you.
Reference: Wealth Management (March 31, 2017) "Six Financial Planning Steps for Expecting Parents."