If you’re preparing to become a new parent, you’ve likely been preoccupied with getting your little one’s room ready and baby-proofing your home. However, the addition of a new family member is an ideal time for estate planning as well. Here are some tips to keep in mind if you’re an Arkansas resident.
Creating living documents
Before you determine what your beneficiaries will receive, your needs should be prioritized in the estate planning process. Living documents such as a power of attorney and health care proxy are essential for organizing your estate. These documents will determine who will make decisions on your behalf if you become incapacitated.
Choosing a guardian and trustee
Your child will need people to step into a parental role when you and your child’s other parent are no longer there. Continue your estate planning process by choosing a guardian and trustee for your children.
A guardian will physically care for the children and will make major decisions for the children such as where they will attend school, receive medical care or attend church. The courts will assess the best interest of the child. If the guardians you’ve named do not seem acceptable to the judge, the court could overrule your decision.
The trustee you select will serve as your child’s treasurer. The trustee will pay for the child’s needs or pay the child’s household bills. Treasurers also file income tax returns and invest funds for the child. At some point, the trustee may give the remaining funds to the child after your wishes have been carried out. Generally, the court is not able to change the trustee you’ve selected.