You can file for a dependency exemption beginning with the tax year your child is born, however the credit phases out for higher earners. There are tax credits and deductions related to children. If your child gets a scholarship and does not need the savings for college, another family member can be assigned as the 529 plan beneficiary. ![]() You can make an Education Cost Worksheet to determine a savings target. Some states offer a tax deduction for upfront contributions to 529 plans. There is no federal tax deduction upfront for contributing to a 529 plan, but the money grows tax-free and, unlike retirement plans, withdrawals for qualified higher education expenses are tax-free as well. Fortunately, there are a number of ways to plan for your child’s future. The sooner you can start saving, the better. Start saving for collegeĬollege costs are on the rise. A Child Care Authorization may simply direct a daycare or school to release your child to the named caregiver, and it may also include more authority to make legal or medical decisions if you cannot be present. When it is time to return to work after your new baby arrives, or you simply need help with child care, a Child Care Authorization helps your relatives or a nanny care for your child. If you want the bill assigned to the spouse’s insurance, alert your insurer and the billing departments in advance. Many hospitals automatically bill the delivery to the birth mother’s insurance. In either case, you may have a new premium when you add a child to the plan. If you have health insurance through a state exchange, your enrollment materials will provide guidance. If you have employer-sponsored health insurance, check with your employer’s HR department or your carrier to learn about the process. Your child is not automatically added to your health insurance. If you misplace the birth certificate and want to obtain a copy, you can send a Birth Certificate Request Letter to the vital records office in the birth state. If for some reason you miss the opportunity at the hospital, you can complete these forms at your local public health department. You can apply for a Social Security number at the same time. When your child is born, you will fill out a birth registration form. Some forms of life insurance may be considered an investment. Estate planners and financial advisors can develop a policy that is the best fit for your entire family and budget. Generally, there are two types of policy- term and whole. It provides a payout to beneficiaries, like a spouse or child, in the event of the insured person’s unexpected death. But life insurance is an essential safeguard for families at every stage. Life insurance comes in multiple forms and many families do not consider it until a child’s imminent birth. It can provide you and your family peace of mind if your estate plan includes a life insurance policy. You can also set up a trust to cover your child’s expenses. When you have a child, it is important to review all the documents in your estate plan annually, in order to make sure any changes to your estate are noted.Īs part of your plan, you may name guardians in the event you and your spouse cannot care for your child. You can make or update your Last Will And Testament at any time before the birth or after. Reviewing your estate plan, whether for the first time or to update an existing one, is an important step for the future. What can we do to protect and prepare for our child’s future? Make an estate plan While you cannot plan for everything, having a plan in place for important things can make all the difference when it matters most. ![]() The last thing you want to deal with in an emergency or when you are up all night with a newborn is wearily reviewing important legal documents.Īdditionally, the less time you have to spend on business or personal affairs, the more time you can spend with your baby or catching up on sleep. It is always a good idea to prepare in advance, especially for new parents.
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