With all of the excitement of having a new baby, we often forget to update policies, accounts and our estates. As a responsible parent we know these things need to be done and doing these few simple things will not only protect your entire family but also put your mind at ease so you can truly enjoy your new bundle of joy.
1) Get Life Insurance
Get Life Insurance – Its one of those things you buy and hope to never use. But not having it can be devastating. Term Life Insurance policies are the most popular choice amount new parents, but you can also get a whole life policy if you decide after speaking with a licensed insurance agent.
2) Make or Update Your Will
A Will allows you to name a Guardian for your child(ren), who will raise them if you pass. You can also name a Trustee, who you designate to control the assets you leave behind for your child(ren). These don’t have to be the same person. The most important thing to do is to just get it done so a Judge won’t have to make those decisions for your kids.
3) Set up a 529 Plan
These state run college savings plans offer tax benefits, and the value of your account can be used at any accredited college or university. Start early to avoid the stress of coming up with college tuition during their last year of high school. Learn more at www.savingforcollege.com.
4) Save on Taxes
Now that you have a baby, you’re eligible for a child tax credit, as well as other possible tax breaks like a flexible spending account for childcare expenses. To maximize your tax credits and savings, speak with a tax advisor.