Estate Planning Checklist for New Parents: 10 Steps

Why It Helps to Plan Now

Most new parents never expect to use these documents. The point of planning is simple: you decide who raises your child and how money reaches them, instead of leaving those choices to a court. The paperwork often takes a few hours spread over a few weeks.

You do not need a large estate to start. A will that names a guardian, up-to-date beneficiary forms, and two short authority documents cover most of what a young family needs. This checklist puts them in a sensible order.

The Checklist at a Glance

Step 1: Choose a Guardian and a Backup

A guardian is the person a court would appoint to raise your child if both parents died or could not care for them. If you do not name one, a judge chooses, based on what the court believes is best for your child. Our guide to guardianship for minor children explains how that process works.

Talk with your partner first, then with the people you have in mind. For each person you are considering, ask:

• Does this person share your values, parenting approach, and faith or culture?
• Do they have the energy, health, and stability to raise a child?
• Do they live close enough to keep your child's school, friends, and routine?
• Are they willing to say yes, and does their household agree?

Name a backup in case your first choice cannot serve. Write a short letter describing your hopes for your child's upbringing. A letter is not legally binding, but it helps the guardian and the court understand your wishes.

Step 2: Make a Will That Names the Guardian

A will is the standard place to name a guardian. Under the Uniform Probate Code, a parent may appoint a guardian for a minor child in a will. In Utah, for example, the appointment takes effect when the guardian files an acceptance with the court, and if both parents have died, the appointment made by the parent who died later has priority. A trust cannot name a guardian, so even families with a trust still need a will.

Your will should also name an executor and a backup, and say who inherits. Read how to make a will for the steps, or how to make a will online if you prefer a guided service. Online services such as Trust & Will can prepare a will for a flat fee, which suits many young families with straightforward finances. Sign it with the witnesses your state requires. A will that is signed incorrectly can be rejected.

We may earn a commission if you use a service linked above, at no added cost to you — see our affiliate disclosure.

If you already have a will from before your child was born, review it. Some states protect a child born after the will was signed, but the rules differ, and you should not rely on them. Update the will so your child is named and your wishes are clear.

Step 3: Decide How Money Reaches Your Child

A minor generally cannot manage an inheritance. If a child inherits money outright, a court may need to appoint someone to handle it. Choosing a structure ahead of time avoids that delay and cost.

The age at which a UTMA custodianship ends varies by state, so a young adult could receive a large sum earlier than you would choose. If that worries you, a trust gives more control. Our guides on living trusts and the pour-over will explain how a trust and a will work together.

Step 4: Update Beneficiary Forms

Life insurance, retirement accounts, and many bank and brokerage accounts pass to the person on the beneficiary form. These forms override your will. See what a beneficiary designation does for the details.

• Name a primary and a contingent beneficiary. Most new parents name their spouse first and a trust or custodian second.
• Do not name your child directly. An insurer generally does not pay a minor, so the money may wait for a court-appointed manager. Name a trustee or a UTMA custodian on behalf of the child instead.
• Check every form. Review employer life insurance, 401(k) plans, IRAs, and bank accounts. Old forms often name a former partner or a parent.

A short call or online form at each institution is usually all it takes. Keep a copy of the confirmation.

Step 5: Think About Life Insurance

If your family relies on your income, life insurance can pay the guardian's costs of raising your child. Think about what the guardian would need: housing, child care, schooling, and everyday expenses. Check whether your employer includes coverage and how much it provides.

A licensed insurance agent or a fee-only financial planner can help you size coverage and compare policies. We do not give financial advice, and policy types vary. If you ever need to claim, see how to file a life insurance claim.

Step 6: Sign a Power of Attorney and a Health Care Directive

These two documents cover the years when you are alive but unable to decide for yourself.

• Durable power of attorney. Lets someone you trust handle money and accounts if you are ill or injured. See what a power of attorney is.
• Health care directive or living will. States your medical wishes and names someone to speak for you. See what a living will is.

Pick people you trust, and tell them. Many families name their spouse first and another adult as backup.

Step 7: Decide Whether You Want a Living Trust

A living trust is optional for many young families. It is most useful if you own a home, want to control how and when your child receives money, or want your estate to avoid probate. A will alone may be enough if your assets are modest and mostly pass by beneficiary form.

Read will vs. living trust to compare, and how to set up a living trust if you decide to create one. If you do, fund it: a trust only controls the assets that have been moved into it.

Step 8: Organize Your Records

When something happens, the people who step in need to find things quickly. Gather these in one place:

• Your will and other signed documents
• Insurance policies and beneficiary confirmations
• A list of bank, investment, and retirement accounts
• Contact details for your attorney, accountant, and financial advisor
• A password manager or a plan for digital accounts

Our emergency information list and estate inventory checklist give you templates. See digital assets after death for online accounts.

Step 9: Tell the People Who Need to Know

Documents only help if people can find them. Tell your guardian, your executor, and your agents what you chose and where the originals are. Share the location of the will, the insurance policies, and your emergency list. The person who would handle your estate may later use our guide to finding a will, so make that search easy.

Step 10: Set a Review Date

Plans change as families do. Review your documents after each new child, a marriage or divorce, a move to another state, a major change in income or assets, or the death of someone named in your plan. Even without a change, a check every few years catches outdated names and forms.

Put a reminder on your calendar now, so the plan stays current without effort.

Common Mistakes New Parents Make

Assuming a godparent is a legal guardian

A godparent has no automatic legal role. A guardian must be named in your will and approved by a court.

Naming no guardian because the choice is hard

Leaving it blank does not avoid the decision. It hands it to a judge. Choose the best option you have today, and change it later if needed.

Forgetting beneficiary forms

A perfect will does not control a life insurance policy that names the wrong person.

Leaving an inheritance to a minor directly

Name a custodian or trustee so a court does not have to step in.

Writing the plan and never telling anyone

Tell the people who will need it, and keep the originals somewhere they can reach.

Frequently Asked Questions