Six Easy Steps

Congratulations! Your new home and the baby is healthy. You finally slept normally and enjoy your little bundle of joy. Now that you are thinking clearly again, this is a great opportunity to quickly and easily plan property along ... just in case. Here are six steps to remember when preparing his first ... Testamentary.

First, lets take a look at seven areas of the document should be taken into account as part of their overall estate plans. They include:

First Last Will and Testament
Second Power of Attorney,
Third Health Care Directive or proxy,
4th Personal User-friendly,
5th Designated beneficiary plans,
6th Living and testamentary trusts and
7th Lifetime gifting programs.

Last Will and Testament, the first and relatively inexpensive starting point for all new parents should consider. Much careful thought should be added to each of the six steps below. But do not forget that you can always change your mind, so it is better to have something now than to have nothing in place in case a problem arises.

Six Steps for New Parents

Step 1 - Personal Custody: As a new parent, you have to think about where you and your spouse wants to take care of their child (ren) in the event that something happens to you. This care can be divided into personal care and financial concerns. Although both of these situations can be handled by the same person, it is often best to separate them. Some individuals who are very nurturing and family oriented, may not have the time or inclination to handle the financial side.

Step 2 - Financial Custody: It is often easier and more efficient appoints someone else to handle the financial aspects in particular of his estate and custody of their children. You May Have a relative or friend that is really organized and great with numbers, but not really in the child and raise a family. May they be the perfect choice for the role of financial guardian in case something happens.

Step 3 - Executors / Personal Representatives: executor is the person or persons who will carry the administration of his estate. Someone who is organized, good with numbers and meet with your family is usually a good choice. They will have to organize, manage and distribute insurance funds, pension benefits, 401k's, IRA's, Social Security survivors benefits, as well as real estate, mortgages and other obligations. This person can be a good candidate for financial guardianship, as already mentioned.

Step 4 - Beneficiary Tags: Many specific investment vehicles, including IRA's, pensions and life insurance have their own user code in the attached plans, but for things like savings, brokerage accounts, real estate and other personal property, you must plan to distribute these funds by making appropriate provisions in your will.

Step 5 - omissions: I hope it will not be part of your situation, but if you have any children or individuals that are specifically dropping out of your will, you should give a summary of who and why would you want your failures. This may be a former spouse or children from previous marriages, children with special needs or other situations that might arise. If you believe that any of these relationships, you should seek professional advice before finalizing the plan.

Step 6 - Witnesses and Updates: Making sure that you select the proper witness is a vital part of your Last Will execution process. But one that is more or less named as a beneficiary, executor or guardian should be used as a witness, because it can create potential conflicts of interest and could be problems down the road. You should also make a habit of regularly reviewing and updating your estate plan, especially if any of the following events. Birth, death, disability, marriages, inheritance or job change can all be triggers that time to see if your current plan still meets your needs.

In Summary: While having and raising a new child is one of the most exciting adventures you will ever have, it also creates a need for some additional short-and long-range financial and estate planning. Unfortunately, many young families have never taken these steps, then the state decides who will take care of their children, take care of their financial affairs, and even that is a legal right to their property.

If you take a proactive approach and spend some time getting your last will and testament made, you can control each of these situations. You will see that your children are cared for the way you want, the person you want and that your finances will be handled by someone who you choose. This typically will do everything to go smoothly, reduce headaches and save you thousands of dollars for his victims.

Keith Maderera a financial expert, author, speaker and father of five children. He was a financial advisor in western New York for more than 30 years. He owns a senior financial and tax associates and founder Maderera Foundation, a private scholarship program for area youth.