As a new parent, you want to do everything in your power to provide a good future for your child. If you have an estate plan, one thing you may look to do is set up a trust for your new baby. Often referred to as a trust fund, this type of planning is not reserved for just the wealthy, as explained by Nerdwallet. It is actually a great way to plan for your child's future.
When you set up a trust, you are putting money aside in an account that cannot be touched by anyone. Typically, you will set guidelines for how it is administered. For example, many people set the trust to be untouchable until their child turns a certain age at which point the child can then take funds from the trust. Usually, the trust is set up so funds can go in but not out until the specified time or conditions are met.
You can set up a trust as part of your estate planning activities. It is best to set it up under professional guidance as the process can be confusing. You want to ensure the security of the money you put in the trust and make sure the process is done legally, so there are no problems down the road when the trust becomes accessible to your child. Since you can really set up the trust based on whatever guidelines you want, you need to be sure they will be effective and having an expert to help will make this easier. This information is for education and is not legal advice.