Updating will/trust after baby

Having a baby is one of the most important triggers to create or update your estate plan. Without a will or trust, the court will decide who raises your child and how your assets are distributed — decisions that may not align with your wishes.

16 steps across 2 sections

1. Steps Guide

  • Name a legal guardian for your child — This is the single most important estate planning decision for new parents. The guardian will raise your child if both parents die or become incapacitated. (S...
  • Name an alternate guardian — If your first choice cannot serve, the court needs a backup. Always name at least one alternate.
  • Create or update your will — Your will should include:
  • Guardian designation for minor children
  • How assets should be distributed
  • Who serves as executor (personal representative)
  • Any specific bequests or instructions
  • Create a trust for your child — A trust offers critical advantages over leaving assets directly to a minor:
  • Minors cannot legally inherit assets directly
  • Without a trust, the court appoints a conservator to manage funds (costly and inflexible)

2. Key Details

  • Intestate succession If you die without a will, state law determines how your assets are distributed. This varies by state and may not reflect your wishes.
  • Guardianship without a will If no guardian is named, the court appoints one. Family members may contest, leading to costly and emotionally draining legal battles.
  • Trust types Revocable living trusts can be modified during your lifetime. Testamentary trusts are created by your will and only take effect after death. For most new parents, a testamentary trust within the wi...
  • UTMA/UGMA accounts Uniform Transfers/Gifts to Minors Act accounts are simpler than trusts but have less control. Assets transfer to the child at 18 or 21 (state-dependent) with no restrictions on use.
  • Digital assets Include instructions for digital accounts (email, social media, crypto, password managers) in your estate plan.
  • Cost A basic will costs $300-$1,000 through an attorney. A will with a testamentary trust costs $1,000-$3,000. Online will services (FreeWill, Trust & Will, LegalZoom) cost $100-$400.

Common Mistakes

  • Not having any estate plan
  • Naming a minor as a direct beneficiary
  • Forgetting to update beneficiary designations
  • Only updating the will and forgetting other documents
  • Choosing a guardian without asking them

Pro Tips

  • Update your estate plan every time there is a major life event (birth, death,...
  • Consider naming a "guardian of the property" (manages finances) separate from...
  • Write a letter of intent (non-binding) alongside your will that describes you...
  • Review your estate plan annually, even if nothing has changed, to ensure it s...
  • If using an online will service, have an attorney in your state review it to ...

Sources

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