Desjardins Financial Security

Checklist - My concerns surrounding our baby's arrival

We consult a lawyer or notary:
- To set up or review our powers of attorney in the event of incapacity. This document gives another person the power to look after me and my property if I become incapable of doing it myself. And if we both become incapable, we are appointing a guardian who will look after our child.
- With the birth of our child, we'll need to change our wills. If both of us were to die, who would look after our child? Therefore, we are appointing a guardian for our child and his property. First we must discuss it with the person we've chosen to make sure they agree.
We review the beneficiary designations in:
- Our individual and group life insurance contracts;
- Our investment contracts, if applicable;
- Our private pension plans, if applicable;
- Other.

The arrival of a first child comes with built-in expenses and will alter our financial situation considerably. For more information, we refer to the article How Much will that First Baby Cost?
We review our personal balance sheet to determine our assets and liabilities and revise our budget. We then have to determine our course of action. For example:
- To ensure our child's well-being and development, we must decide whether one of us will stay home full time until our child reaches school age, hire someone to baby-sit in our home or use a daycare. In any case, we must plan for the financial impact of our decision.
- We have to determine if the size of our home and car is suitable for our growing family.
- We create a "Baby Budget" to better prepare ourselves.
We determine how much we'll need to save up for something special to provide for our child's future. We could already set up an education fund.
We refer to an accountant about our new tax status. Thus, we'll know how we can minimize the tax we pay each year on our family income.
Grandparents can contribute financially to the future of their grandchildren by:
- Setting up a trust or an education fund through Universal Life Insurance coverage or a Mutual Fund Investment.
- Leaving a life insurance policy to their grandchildren. The article How to Transfer Wealth While Minimizing Tax can tell us more about it.

We are looking after meeting our child's material needs until he is completely independent.

We both need to contact our employer and the companies we have group and individual life insurance with to make sure that our child is covered under our policies and that the designated beneficiaries are appropriate.
We consult an advisor to determine if, in the event one of us becomes disabled or seriously ill, or in the event of death, our income would be enough to meet the material needs of our child until he is completely independent, and those of our family, to maintain our standard of living and to keep our house.
We review our insurance portfolios and make sure that we have protection that can be easily adapted to our needs and evolve with our situation. We refer to the section I Need Advice Tailored to My Situation - Couples with dependent children.
How would we go on living if our child were to die? Would we be able to go to work every day? We inquire about the benefits of Universal Life Insurance, which includes protection for children. This product can be easily adapted to our personal needs and our situation as it evolves.
If our child became ill or had an accident, would we have the money to pay for unexpected expenses? Accident Insurance will protect our entire family against financial worries if misfortune strikes.

Children
Services and information guide on the various programs or benefits for children (Human Resources and Skills Development Canada site).

Becoming a parent
Quebec government information guide on the government procedures to follow on the birth of a child.

Provincial and territorial legal information agencies