Thinking about starting a family? Well, there are a few legal matters prospective parents may want to consider, prior to picking out nursery colors.
Having a baby can be an exciting time but parents mustn’t forget the financial responsibilities that accompanies their new bundle of joy. Handling matters earlier rather than later may save you from financial mishaps and provide financial safety for your child.
BlackEnterprise.com caught up with Judge Lauren Lake, of the daytime TV show Paternity Court, to talk five legal matters that prospective parents may want to handle in advance.
In the courtroom, Lake presides over emotionally-driven cases that result in life altering and sometimes financially burdening changes. Having legal matters in order will hopefully ease the blow should you one day find yourself in a family dispute with your spouse.
See Lake’s suggested five legal matters to handle below :
Living Will: Creating a living will for your family will designate when and who will receive your assets in the time of an untimely death. Keep in mind that having a living will saves you or a loved one a trip to probate court.
College Fund: Find a 529 College Savings Plan. A 529 plan is a tax-advantaged savings plan designed to encourage saving up for college. This is perfect for prospective parents. 529 plans are sponsored by states, state agencies, or educational institutions.
Life Insurance: Apply for life insurance coverage even before becoming pregnant, or in early pregnancy, to avoid potential issues later. It has been suggested by many legal professionals that one should buy their insurance outside of their employer. That way, you can take it with you wherever your life may lead you.
Trusts: Stagger the time period in which your child will receive inheritance from a trust fund. This will allow your child to mature and not blow through your hard earned savings.
Get a prenup. One of the best features of a prenup is that it can protect nearly every kind of asset a parent may want to pass to their children, versus a spouse or future spouse.