Parents spend years pouring themselves into their children — packing lunches, showing up to games, staying up late when fevers strike. It’s a beautiful kind of love that wants to give everything, even when there’s not much left to give.
That same love drives parents to invest in their children’s future — to save, to budget, and to build something better for them. But what happens if they’re no longer around?
It’s a tough question. One most of us avoid. But not having a plan can leave your family vulnerable and your intentions unclear. Estate planning is not about doom and gloom; it’s about creating peace, clarity, and a legacy of love.
Estate planning ensures that your hard work continues to support your children long after you’re gone. It bridges the gap between good intentions and real-world outcomes.
Why Estate Planning Matters — Even If You’re Not Wealthy
When people hear “estate planning,” they often picture vast fortunes, lawyers in suits, and sprawling mansions. The reality? If you’re a parent with kids and own anything — a home, a savings account, even just a life insurance policy — you need an estate plan.
Why? Because:
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Children can’t legally inherit assets. A guardian or custodian must manage anything they receive until they reach adulthood.
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Without a will, the state decides. And state laws don’t take into account your personal wishes or your family’s dynamics.
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It prevents family conflict. Clear instructions help avoid arguments or legal battles during an already difficult time.
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It protects your investments. You’ve worked hard to invest in your children’s future. A plan ensures those investments are used as you intended.
Estate planning is an act of love. It says, “Even if I’m not here, I’ve got you.”
Step 1: Define What Legacy Means to You
Before diving into legal documents, take a step back and ask yourself: What does legacy mean to me?
Your legacy is more than money. It’s your values, your vision, your hopes for your children.
Do you want to:
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Fund your child’s college education?
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Support them in starting a business?
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Leave a charitable impact in your family’s name?
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Teach them how to manage money responsibly?
Write it down. This will serve as a guide for every decision you make moving forward. It personalizes your plan and reminds you why you’re doing this in the first place.
Step 2: Make a Will — Even a Simple One
A will is the cornerstone of any estate plan. It’s the document that outlines who receives what and who will care for your children if something happens to you.
In your will, you can:
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Name guardians for your minor children.
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Decide how your assets are divided.
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Provide instructions for heirlooms or sentimental items.
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Express personal wishes for your children’s upbringing.
Creating a will can be as simple as using an online service like Trust & Will or FreeWill. These tools walk you through the basics and allow you to complete a legally binding document quickly.
Of course, for more complex situations, consulting an estate attorney is smart — especially if you own property, have multiple beneficiaries, or want to set up a trust.
Step 3: Choose Guardians Wisely
Naming a guardian is one of the most emotional and essential parts of estate planning. If both parents pass away or become unable to care for their children, the guardian steps in.
Consider:
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Values: Do they share your parenting philosophy and life priorities?
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Lifestyle: Can they provide a stable, loving environment?
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Location: Would moving in with them uproot your child?
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Willingness: Have you asked them if they’re open to the responsibility?
Always name a backup guardian. Life is unpredictable. Your first choice may not be available when needed.
Having this conversation can feel awkward, but it often strengthens relationships and brings peace of mind.
Step 4: Assign Beneficiaries to Your Financial Accounts
Wills are important, but some assets transfer outside of them. That includes retirement accounts, life insurance policies, and investment accounts.
Make sure you’ve:
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Named a primary and contingent beneficiary.
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Updated beneficiaries after major life events (marriage, divorce, birth).
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Coordinated account beneficiaries with your will.
Step 5: Consider Setting Up a Trust
A trust gives you more control than a will. It allows you to specify how and when assets are distributed and helps protect them from misuse, taxes, or legal complications.
Common reasons parents create a trust:
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To stagger distributions (e.g., 25% at 21, 25% at 25, remainder at 30).
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To manage investments or large sums for minors.
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To provide ongoing care for a child with special needs.
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To keep financial matters private (trusts aren’t public like wills).
There are different types:
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Revocable Living Trust: Can be changed anytime.
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Irrevocable Trust: Offers greater protection but less flexibility.
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Testamentary Trust: Created as part of your will.
Consult a qualified estate attorney to determine what’s best for your situation.
Step 6: Get Life Insurance to Replace What You Provide
Your presence brings more than love — it provides income, stability, and support. If something happens to you, life insurance ensures your family has the resources to move forward.
Term life insurance is affordable and often ideal for parents. It provides coverage for a set period (like 20 years) and pays out if you pass away during that time.
Use the payout to:
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Pay off a mortgage
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Fund your child’s education
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Cover daily living expenses
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Continue investing for your child’s future
Platforms like Policygenius allow you to compare quotes and purchase policies easily. Many parents qualify for large coverage amounts at surprisingly low monthly rates.
Remember to update your policy’s beneficiary and consider naming a trust as the recipient if your children are underage.
Step 7: Store Everything Securely — and Share Access
A well-crafted estate plan is only useful if someone knows where to find it.
Store:
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Copies of your will and trust
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Insurance policies
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Account details
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Guardianship letters
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Passwords and digital logins
Use a fireproof safe or secure digital vault like Everplans. Let your spouse, executor, or trusted family member know where these items are.
Consider creating a family emergency binder — a simple, all-in-one reference for your financial, legal, and medical documents.
Step 8: Review and Update Regularly
Estate planning isn’t a one-time task. As your life evolves, your plan should too.
Revisit it when:
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You get married or divorced
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You have a child
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Your financial situation changes
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Your children reach adulthood
Also review your beneficiaries, guardians, and insurance coverage every couple of years.
A stagnant plan can create just as much confusion as no plan at all. Keep it current.
Final Thoughts: A Legacy That Lives On
You’re already doing something powerful by investing in your children’s future. Estate planning is how you protect that investment and ensure it keeps working for your family — no matter what.
You don’t need to be a lawyer or a millionaire to build a plan. You just need to start.
Because someday, your child might say:
“My parents didn’t just love me while they were here — they protected me long after.”
And that’s a legacy worth leaving.
Want help investing for your child’s future?
Check out Mostt, the simple investing app for parents. Start with as little as $25/month and build a future your kids will thank you for.