I have a life insurance policy, but its only $10,000.
If anything were to happen, I want to verify that only she has access to any money.
I have to double-check that shes safe.
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Thats 18 in most states.
But oversight isnt a bad thing.
That means theyd be legally obligated to put your daughters interests ahead of their own.
Their role is to keep that money safe and confirm its used for your daughters benefit.
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Think carefully about the people you know whom youd trust to manage money for your child.
It doesnt necessarily need to be the same person youd want to serve as her legal guardian.
In other words, the probate court would appoint someone to make financial decisions on your daughters behalf.
That may not be the person you would have chosen.
That would ultimately mean less money for your daughter.
If you havent done so already, you should probably make a will.
Ideally, youd create your will with an estate attorney, particularly since you have a minor child.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
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The easy part is the money in your daughters 529 plan.
Before I go any further, I want to discuss the amount of life insurance you have.
Upping your coverage needs to be a top priority.
Aim for at least 10 times your annual salary, which may be more affordable than you think.
This should be an even higher priority than funding your daughters 529 plan.
Many young adults lack the maturity and financial savvy to manage a large amount of money.
So many parents and grandparents want to put oversight in place as part of their estate plan.
Should you change your mind on that, a living trust is the best way to go.
Youd appoint someone as trustee to manage trust assets according to the wishes youve spelled out in trust documents.
A properly structured trust will avoid probate, which means the money will get to your daughter faster.
Because your estate will save on court costs, that also means more money for your daughter.
Drafting a will is a lot simpler than creating a trust.
If it’s crucial that you DIY your estate plan for now, thats fine.
Youll be putting safeguards in place for your daughter and conveying your wishes to the court.
In estate planning, something will almost always be better than nothing.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
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