Estate Planning Checklist for New Parents

Why estate planning matters for new parents

Welcoming a child changes priorities immediately. Beyond diapers and sleep schedules, an estate plan ensures your child will be cared for and that assets intended for their benefit are available when needed. In my practice with young families, the most common gaps are missing guardian nominations and out-of-date beneficiary designations. These oversights can force courts to decide who cares for your child or cause assets to pass in ways you did not intend.

This checklist is practical: it tells you what to create, what to update, and what to communicate. It references reliable sources for legal and financial details (IRS, CFPB, American Bar Association). This guidance is educational—not a substitute for an attorney’s advice—so plan to consult a licensed estate planning attorney to finalize documents tailored to your state’s laws.

Sources: IRS estate and gift tax guidance (https://www.irs.gov/), CFPB guardianship & estate planning resources (https://www.consumerfinance.gov/), American Bar Association estate planning resources (https://www.americanbar.org/).

Core items to include (the essential checklist)

1. Last Will and Testament

• Why: A will names a guardian for minor children and directs how your assets should be distributed. Without a valid will, state intestacy laws decide guardianship and asset distribution.
• What to include: guardian and contingent guardian names, executor (personal representative), specific bequests, and residue distribution.
• Tip: Review guardian choices with those individuals before naming them.

1. Guardianship nomination (explicit in the will)

• Why: Naming a guardian in your will gives courts a clear expression of your wishes about who raises your child. Many parents stop here—don’t. Also name alternates and explain any special caregiving instructions.

1. Revocable trust and trust funding

• Why you might create one: A revocable living trust can speed asset transfers, avoid probate for assets properly funded into the trust, and specify how distributions are managed for a minor.
• What I recommend in practice: If you own a home, sizable investment accounts, or want precise control over timing and conditions of distributions to your child, work with an attorney to create and fund a trust.
• Learn more about trust options and funding: see our guide on Revocable vs Irrevocable Trusts: Pros and Cons and the practical steps in Trust Funding: How to Move Assets into a Trust Correctly.

1. Financial Power of Attorney (durable)

• Why: If you become incapacitated, a durable financial power of attorney lets a trusted agent handle bills, banking, taxes, and benefits.
• Choose someone who understands your finances and can act calmly under pressure. See our explainer on Durable Power of Attorney.

1. Medical Advance Directive and HIPAA authorization

• Medical (health care) power of attorney or advance directive lets someone make medical decisions for you if you can’t. A separate HIPAA release helps that person get medical records quickly.

1. Life insurance — adequate coverage and correct beneficiaries

• Why: Life insurance replaces lost income and pays immediate expenses (funeral, childcare, mortgage) after a parent’s death.
• How much: Needs vary; a common starting point is 5–15 times annual income depending on debts, childcare costs, and college saving goals. In my work, most new parents quickly prioritize a term policy sized to cover 10 years of expenses plus an emergency lump sum.
• Make sure beneficiaries are current and align with your estate plan. A named beneficiary on a policy can bypass will instructions—coordinate these details with your attorney.

1. Retirement and investment account beneficiary designations

• Why: Accounts with beneficiary forms (401(k), IRA, brokerage) pass directly to those beneficiaries regardless of what a will says. Update these forms after the birth of a child and after any life changes.

1. Payable-on-death (POD) / Transfer-on-death (TOD) designations and jointly held property review

• These designations allow accounts to pass directly to named recipients. Confirm titling and make sure it matches the plan you have for your child or trust.

1. Letter of intent (non-binding)

• Purpose: A short letter to the guardian describing your child’s routines, medical needs, religious or educational preferences, and your hopes for their upbringing. This isn’t a legal document but is helpful guidance.

1. Digital asset account inventory and access plan

• Compile login locations, instructions for social media, cloud storage, digital photos, and online financial accounts. Store access securely (password manager + emergency access) and document how you want those assets handled.

1. Emergency contacts and short-term care arrangements

• Identify who will pick up your child from daycare, who has permission to access medical records temporarily, and how to access childcare funds quickly.

Common mistakes new parents make and how to avoid them

• Not naming a guardian at all: Avoid this—courts decide otherwise. Put guardian names and alternates in your will.
• Naming guardians but not communicating with them: Discuss expectations and logistical matters (finances, religious upbringing, schooling) with the chosen guardians ahead of time.
• Forgetting beneficiary updates: After a birth is when many parents mistakenly leave an old ex-spouse or parent named as beneficiary. Update all beneficiary forms immediately.
• Assuming a simple will covers everything: If you want control over when and how a child receives money (e.g., at ages 18, 25, 30), use a trust.
• Not funding a trust: Creating a trust is only half the job—re-title assets into the trust (see Trust Funding guide above).

Timeline: what to do in the first 30 days, next 6 months, and ongoing

First 30 days

• Create a short term plan: choose a temporary caregiver for immediate needs and set up access to funds for that caregiver.
• Update employer life insurance and beneficiaries for 401(k) / pensions.
• Buy or increase term life insurance if needed.

Next 6 months

• Draft or update a will naming guardians and alternates.
• Execute a durable financial POA, medical POA/advance directive, and HIPAA release.
• Decide whether to set up a revocable trust and begin the funding process if appropriate.

Ongoing (review every 1–3 years or after major events)

• Revisit guardianship, trustees, trustees’ powers, and beneficiary forms after marriage, divorce, new children, or major changes in assets.
• Annual check of life insurance needs and account beneficiary alignments.

Questions to ask your estate planning attorney or financial planner

• Which documents should be executed today given my state’s laws and family situation?
• If I create a trust, which assets should be funded into it and how do we retitle them?
• How will life insurance proceeds be distributed and should the policy be owned by the trust or an individual?
• Who should I name as executor, trustee, guardian, and agent under POAs—and what are the duties of each?
• How do beneficiary designations interact with my will and trust?

Cost expectations and practical considerations

Costs vary by complexity and location. Simple wills and basic powers of attorney can be several hundred dollars if done through an attorney or slightly less with a reputable online provider. A fully funded revocable trust with custom provisions typically costs more (often in the low-to-mid thousands). Life insurance premium costs depend on age, health, coverage amount, and policy type; term insurance for healthy new parents is usually the most affordable option.

In my practice, families who invest in the planning upfront report less stress and clearer decision-making during family crises. Treat the costs as insurance against much higher emotional and financial costs later.

Special situations to consider

• Blended families: Use trusts and careful beneficiary planning to protect children from different relationships.
• Special needs children: Speak with an attorney about Special Needs Trusts and public benefit preservation.
• High-net-worth families: Tax planning (estate tax) may be necessary; consult an attorney and tax advisor. For federal estate and gift tax guidance, see the IRS (https://www.irs.gov/).

Practical document storage and execution tips

• Keep originals of executed wills and trusts in a secure but accessible place (safe deposit box, attorney’s office, or home safe). Provide copies to your executor and attorney.
• Give your named agents (POA, health care proxy) a copy and explain where originals are stored.
• Use a password manager for digital account access and designate emergency access for a trusted contact.

Final checklist (actionable)

• [ ] Buy or confirm life insurance coverage and update beneficiaries.
• [ ] Execute or update a will and name guardians and alternates.
• [ ] Create a durable financial power of attorney and a medical power of attorney/advance directive.
• [ ] Set up HIPAA authorization.
• [ ] Decide on a trust (if needed) and begin the funding process.
• [ ] Update all beneficiary designations (retirement accounts, insurance, brokerage).
• [ ] Prepare a letter of intent for guardians.
• [ ] Inventory digital assets and secure access.
• [ ] Store originals safely and share copies with trusted agents and your attorney.

Professional disclaimer: This article is educational and does not constitute legal advice. Estate and guardianship rules vary by state; consult a licensed estate planning attorney to prepare legally enforceable documents tailored to your family’s situation.

Further reading on trusts and powers of attorney: Revocable vs Irrevocable Trusts (https://finhelp.io/glossary/revocable-vs-irrevocable-trusts-pros-and-cons/), Trust Funding (https://finhelp.io/glossary/trust-funding-how-to-move-assets-into-a-trust-correctly/), Durable Power of Attorney (https://finhelp.io/glossary/durable-power-of-attorney/).

If you’d like, I can convert this checklist into a printable one-page worksheet or a fill-in-the-blanks template for your first attorney visit.