If you are about to be a parent, it is time to get serious about planning for your child. Lots of plans will get made about baby clothes, strollers, and the color of the nursery. Often left out is planning for the future – is something unexpected should happen.
First, you need to sign a Will. This is where you name a Guardian to raise your child if you are unable to be there to do so. If you don’t, a Court will decide the child’s fate.
While Probate Court Judges take this very seriously and want to make the “right” decision, they will never have enough information available. They don’t know your family and friends the way you do. Imagine the dilemma for a judge when a bunch of seemingly nice relatives all come rushing into court to be the Guardian of your child. Who to choose? His sister? Her mother?
This is often a difficult decision for the parents themselves to make and is frequently the reason that this does not get done. Mom thinks her family should raise the child and Dad thinks his should. As difficult as it is, you need to decide and put it in your Will. In the event that both parents will to die in an automobile accident, someone needs to raise the child or children.
Next, unless your prospective guardian is wealthy, you will need life insurance to cover the cost of raising your child. When you are young, this is relatively inexpensive. You should purchase enough coverage to make sure that your child or children can be raised appropriately and have a little extra for college.
What if only one of you dies? You still need that life insurance. If the primary earner dies, the money will be required to continue the family in the home and at the same level of living. If the parent who is primarily handling the child rearing tasks dies, it will cost a bundle to replace all of the services that he or she provided.
Two important steps to take before the new baby arrives – every bit as important as deciding on furniture for the nursery.