Key Takeaways
- Estate planning for young families is mostly about two questions: who would raise your children, and how would they be supported?
- A will is where you nominate a guardian for your minor children; without one, a court decides.
- Minors can’t directly manage an inheritance, so use a trust or a custodian for money and insurance you leave them.
- Beneficiary designations on life insurance and retirement accounts override your will, so keep them current.
- Health care and financial powers of attorney and a living will protect your family if you’re injured or ill, not just if you die.
Why young families need an estate plan
Estate planning sounds like something for retirees with large portfolios. For parents of young children, it’s actually about something more urgent: making sure your kids are cared for by the people you choose, with the money they need, if something happens to you.
The good news is that a basic plan isn’t complicated. Most young families need five things.
Step 1: Nominate a guardian in your will
If both parents die, a court appoints a guardian for minor children. In most states, the most important thing you can do is name that guardian in your will. Judges aren’t strictly bound by your choice, but they give it significant weight.
When choosing, think about:
- Values and parenting style
- Age, health and energy
- Where they live, and whether your kids would have to move
- Their relationship with your children
- Whether they’re willing; always ask first
Name an alternate in case your first choice can’t serve.
Step 2: Decide how money will reach your kids
Children under 18 (or 21 in some states) can’t legally manage money on their own. If you leave assets directly to a minor, a court may need to appoint someone to manage them, with ongoing oversight. Common alternatives:
- A trust for your children, managed by a trustee you choose, with rules about how and when the money is used
- A custodian under your state’s Uniform Transfers to Minors Act, which is simpler but hands control to the child at 18 or 21
- Life insurance sized to cover childcare, housing and education, with the trust named as beneficiary
Step 3: Check your beneficiary designations
Life insurance, retirement accounts and many bank accounts pass directly to the person named on the beneficiary form, regardless of your will. Review them after every major life event. See primary vs. contingent beneficiaries for how to set them up.
Step 4: Plan for your own emergencies
An accident or illness is statistically more likely than death for young parents. Make sure someone can step in:
- Health care power of attorney and living will, so your partner or another trusted person can make medical decisions and knows your wishes
- Financial power of attorney, so bills, the mortgage and accounts keep running
- HIPAA release, so family can get information from your doctors
Step 5: Cover short-term care for the kids
For times you’re away or unavailable but not gone for good, use a temporary guardianship authorization and a medical consent form.
Comparing the documents
| Document | Protects against | Key decision you make |
|---|---|---|
| Will with guardian nomination | Both parents dying | Who raises your children |
| Trust or custodian account | Kids inheriting money they can’t manage | Who manages it, and until what age |
| Beneficiary designations | Accounts going to the wrong person | Primary and contingent beneficiaries |
| Health care POA and living will | A parent being incapacitated | Who makes medical decisions, and your wishes |
| Financial power of attorney | Bills and accounts frozen | Who manages your finances |
| Temporary guardianship authorization | A parent being away or unavailable | Who cares for the kids short-term |
Frequently asked questions
A court will appoint a guardian, often after hearing from relatives who may disagree. Any money left to your children may also need court supervision until they’re adults. A will lets you make those choices yourself.
Yes. Many parents name one person as guardian and another as trustee, so the person raising the children isn’t also solely responsible for the finances.
Yes. Each parent needs their own will, ideally naming the same guardian so there’s no conflict.
As soon as possible, ideally before the baby arrives or in the first months. It’s quick to set up the basics and easy to update later.
Review it every few years and after major events: a new child, a move to another state, a divorce, or a change in your chosen guardian’s circumstances.
Keep reading
- Legal Documents Every Parent of a Minor Child NeedsThe legal forms that protect your kids if you're traveling, unreachable or unable to care for them: consent forms, temporary guardianship, wills and more.
- Child Travel Consent Form: When Your Child Needs OneWhen a child travels with one parent, grandparents or a group, a travel consent form shows permission. Learn when it's needed, what to include and whether to notarize.
- Temporary Guardianship Form: How to Leave Your Child in Someone’s CareA temporary guardianship form lets a trusted adult care for your child while you're away. Learn how it works, how long it lasts, and how it differs from custody.
- Medical Consent Form for a Minor: For Grandparents, Sitters and CaregiversA medical consent form lets grandparents, babysitters and other caregivers approve treatment for your child when you can't be reached. Here's what to include.
If something happens, who can step in for your kids?
Name the people who can get medical updates, consent to care and look after your children if you can’t, with HIPAA, medical authorization and temporary guardianship forms. The No Brainer Box adds powers of attorney, a living will and travel consent.
- Answer a few simple questions online
- Download your completed, ready-to-sign forms
- Sign them and keep copies in your account
This guide is general educational information written by the No Brainer Forms Team. It is not legal advice, and No Brainer Forms is not a law firm. Laws and signing requirements vary by state; for advice about your situation, talk to a licensed attorney in your state.