Family Wills and Trusts: What Every Parent Needs to Know About Planning Ahead
When it comes to protecting your family, few things are as important—or urgent—as having the right estate planning documents in place. Whether you’re starting a will, creating a trust, or setting up a full estate plan, the process can feel overwhelming—but it doesn’t have to be. With a little guidance, you can take meaningful steps today to care for your loved ones if something happens tomorrow.
These are essential steps to secure your child’s future if something unexpected happens. If you’re a parent—especially a new one—you need to consider what would happen to your children if you and your partner were to pass away unexpectedly. A thoughtfully drawn up family will can provide peace of mind and clear direction for those you love most.
What Are Last Wills and Trusts and an Estate Plan?
Let’s start with the basics. A last will and testament is a legally binding document that specifies how you’d like to distribute assets after your death. In it, you can name a guardian for your minor children, appoint an executor, and detail your final wishes and specific bequests—such as what you wish to leave to whom.
A trust—such as a revocable living trust—lets you move assets into a legal arrangement that may allow them to be passed to beneficiaries without going through probate court. A revocable living trust can be changed during your lifetime and often simplifies the distribution of part of your estate. A trust may also allow you to set age-based access to funds, so your children don’t receive a large inheritance all at once. This can set your children up for future success and ensures they learn how to manage money properly, smaller bits at a time.
An estate plan is the umbrella term for all of your legally binding documents, including both your will and trust, along with other essential estate planning tools like financial power of attorney, beneficiary designations, and life insurance. Together, these form the foundation of a plan designed to take care of your family even if the unthinkable happens and ensures that everything is handled according to your wishes.
Why Are They Necessary?
Without a legally valid family will or trust in place, your estate could be subject to your state’s intestate succession laws. That means if you die without one, the state—not you—determines how to distribute your assets. Your dependents after your death may have to wait months, or even years, while the case goes through probate court and the whole probate process. What’s worse, the courts will be the ones who decide who gets custody of your children. This might not align with your wishes, so making sure you have a plan in place is crucial.
Once you’ve written your will, you are required to sign it in the presence of two witnesses. If this is isn’t done, or if your mental capacity to make decisions is later questioned, the whole process could be delayed or invalidated. That’s why it’s vital to draw these documents while you are of sound mind and able to express your intentions clearly, to make things as smooth as possible for those you leave behind.
How Does Life Insurance Fit In?
Life insurance is a key part of an estate plan. Life insurance policies can provide immediate financial support for your surviving spouse, adult child, or other heir or dependent. As a young parent, it provides peace of mind, knowing that your children will be financially supported should something happen. It’s especially important if you have debt or a mortgage as well, so that your children and beneficiaries aren’t left with so much to deal. Life insurance policies pay out directly to the beneficiary, helping to cover everyday expenses and long-term care needs—whether that’s daycare, education, or simply putting food on the table. This is why choosing someone you trust to be the beneficiary is so important.
What Are Beneficiary Designations?
A beneficiary designation allows you to name who will receive specific assets, such as bank accounts or life insurance benefits or any portion of your estate, when you pass away. These designations are powerful because they bypass the will entirely. So even if your will says one thing, the beneficiary designation takes precedence. This is why it is so crucial to keep them up to date.
Parents need to regularly review these designations to ensure they reflect your current wishes—especially after major life events like the birth of a child, divorce, or remarriage. In estate planning, even small oversights can have big consequences.
Why Every New Parent Should Create a Legal Last Will and Testament
New parents are often overwhelmed with diapers, feedings, and sleepless nights—but creating a parents will should be at the top of your to-do list. You need to name a guardian for your children in case you or your spouse pass away unexpectedly while they’re still under your care. Without a legally binding last will and testament, custody decisions will fall to a judge who doesn’t know your family. And even a judge with the best intentions may not place them in a home with the same values that you would.
Your will becomes the essential document that specifies your intentions—not just for finances but for who will raise your children. It can provide peace of mind should the unthinkable happen, and ensure that your children are safe, mentally and emotionally, as well as physically.
How to Assign the Guardian of Your Children
When assigning a guardian, you’re making one of the most impactful decisions in your estate plan. Choose someone who shares your parenting values, is financially stable, and emotionally prepared to raise your kids. Consider their age, health, and willingness to take on the role. Talk with your spouse about who you have in mind, and make sure you both come to an agreement. And be sure to have a conversation with the person, or couple, you would like to choose. Make sure that they are also on board and feel that they can take on the responsibility should the need arise.
Whoever you end up choosing, your decision should be included in your last will and testament, and you must make sure that your will is notarized and signed in the presence of two witnesses, and include a self-proving affidavit if possible, to ensure it holds up in court. This helps avoid complications later if the will is ever contested.
Who Should Be Your Power of Attorney?
Your financial power of attorney is the person who can make decisions on your behalf if you’re incapacitated. This isn’t just about money, it’s about protecting your children’s well-being if you’re unable to act in your own best interest.
This legal document should be given to someone you trust, ideally someone who understands your financial goals and family dynamics. They should be someone with the mental sharpness and emotional intelligence to act thoughtfully in challenging situations.
How to Start the Steps Towards Making a Will, Trust or Estate Plan
If you’re asking yourself, “When can you make a will?” the answer is: as soon as you have something or someone that you want to protect. Your estate is doesn’t have to be huge, because if you have children, you have something priceless to plan for. There’s no wrong time to start. In fact, the most important step is starting! Even a simple will can go a long way toward protecting your family.
“How do you draw up a will?” This doesn’t have to be as intimidating as it sounds. You can write a will yourself using an online service, or better yet, work with an estate planning lawyer to ensure your documents are valid and complete. Determining the best path depends on your comfort level, your estate’s complexity, and your family’s specific needs.
How to Choose a Lawyer to Write Your Will
Choosing a lawyer to write your will is easier when you know what to look for. When it comes to working with a lawyer, choose someone who focuses on wills and trusts, particularly estate planning for young families. Be sure to ask them up front about their experience and what fees they charge. A good estate attorney or estate planning lawyer will guide you through setting each legal document that outlines your wishes, help you understand the nuances of wills and trusts, and can help you navigate the difference between them.
Having a legally binding document isn’t enough—it must also reflect your wishes and meet your state’s requirements. This is where working with a lawyer becomes invaluable.
How to Establish a Trust
Creating a trust allows you to bypass the delays and costs of probate court and is a smart move for families with young children. You might opt for a revocable living trust, which you can change over time, or an irrevocable trust, which is more permanent and can help reduce estate taxes.
A trust lets you control how and when your children receive money. For example, you may not want a teenager to suddenly inherit a large sum of money. A trust may specify that funds be used for education or released gradually as they reach adulthood.
Establishing a revocable living trust is relatively straightforward with the help of a lawyer. It becomes especially useful if you become incapacitated or wish to avoid probate entirely. The name of the trust should clearly reflect your intentions, and your estate planning attorney can help you set it up properly.
How to Set the Executor of Your Will
Your executor is responsible for making sure your personal property and assets are distributed as specified. They will oversee everything from paying your final bills to managing taxes to making sure your personal property and assets are distributed as you have outlined. Your executor will need to be responsible, trustworthy, and ideally, someone who knows your family, so choose someone you know who is detail-oriented, organized, and emotionally equipped to handle this responsibility during a difficult time. You’ll need to name this person clearly in your will, and talk to them ahead of time so they understand your expectations and how you want your assets distributed, and make sure that they are willing to serve in this role.
Creating a will for your family isn’t about being morbid. It’s about being prepared and taking care of your children or loved ones when you aren’t there to do it yourself. There is never a wrong time to begin your estate planning journey. Family wills and trusts are all about peace of mind. A trust versus will discussion with the help of a lawyer can help determine the right tools for your family, but what matters most is that you act. If you have kids, especially minor children, essential estate planning is about making sure they’re loved, protected, and financially secure no matter what.
Make sure you have life insurance and a will and a trust. Have the hard discussions to choose a guardian for your children, and decide who will be your power of attorney and/or executor of your will. Find a lawyer that you can trust to make sure all your documents are legal and will hold up in court
By taking these steps now, you’re making a powerful promise: that you’ll do everything in your power to care for your family, even if you’re not around to see them grow.
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