Financial and Legal Tips for New Parents

Here are some helpful tips for providing a solid financial foundation for your child.

After the birth or adoption of a child, there are three financial and legal things that generally should be taken care of nearly immediately.

While you are amending or creating your will, talk to your estate planning advisor about other legal measures or changes to your estate plan that can help protect your child’s financial future. For example, you may want to address how any assets you leave your child are to be managed if you die before the child is an adult.

Speaking of your child’s financial future, if your child would suffer financially without your income, consider purchasing life insurance in case you die before the child reaches adulthood. For many young families, term life insurance is a good choice, enabling them to purchase coverage for just those years while they are raising children or paying a mortgage.

The addition of a new child may also change your tax picture. The Child Tax Credit alone may reduce your federal income taxes by up to $2,000 per child per year if you are eligible to claim it. In light of the potential tax breaks, it’s a good idea to review how much tax is being withheld from your pay and perhaps supply your employer with a new IRS Form W-4 so that less tax is withheld.

A “To Do” List for Parents

These items on the list are general in nature so please seek advice from us or your tax advisor about your specific situation.

Newborn

Age 0-5

Age 6-14

Age 15-18

With offices in Rutland and Williston, Vermont Copper Leaf Financial develops a customized wealth management plan designed to integrate every aspect of your financial life. Our approach is to conduct business in an orderly fashion, especially in a disorderly world. Where there is uncertainty we look for facts. We call our approach evidence-based investing. Call us today at 802.878.2731 to schedule a strategy session and begin building your road map to financial success.

Article published in April 2020 edition of Eye on Money. If you would like to be added to our mail list please email jennifer@dh-cpa.com