Estate Planning for Young Families: What Every Parent Should Know About Estate Planning

Published on

September 23, 2026

When you’re raising young children, estate planning may not be at the top of your to-do list. Between work, school, activities, appointments, and everything else that comes with family life, thinking about what would happen if you were no longer here can feel uncomfortable. But estate planning for young families isn’t just about preparing for the distant future. It’s about protecting your children, providing clear instructions for the people you trust, and making sure your wishes are known if the unexpected happens.

You don’t need to be wealthy to benefit from an estate plan. In fact, having young children is one of the most important reasons to create one.

Why Estate Planning Matters for Young Parents under Wisconsin Law

Many young families assume estate planning is something toworry about later—perhaps after buying more property, building significantsavings, or reaching retirement. That’s a common misconception.

For parents of young children, one of the most important parts of an estate plan is determining who would care for your children if you couldn’t.

Without clear legal instructions, decisions about your children and your assets may be left to the courts or handled according to Wisconsin state law. An estate plan allows you to make important decisions ahead of time. A comprehensive estate plan can help you:

Name a Guardian for your minor children
Identify a Trustee to manage money or property left to your children
Provide instructions for distributing your assets
Establish financial protections for your family, usually through a Trust
Designate people to make financial or medical decisions if you become incapacitated (Financial Powers of Attorney and Health Care Powers of Attorney)
Help your family understand your wishes through clear written instructions
Reduce uncertainty during an already difficult time

Estate planning is ultimately about more than dividing assets. It’s about creating a plan for the people you love.

1. Choose a Guardian for Your Children

For most parents, choosing a guardian is the most importantpart of estate planning.

A Guardian is someone you nominate to care for your minor children if you die or otherwise become unable to care for them. Consider someone who:

Shares your values and parenting philosophy
Understands and respects your wishes
Is willing and able to take on the responsibility
Can provide a stable home environment
Has a strong relationship with your children
Is likely to remain involved in your children's lives

You should also name an alternate guardian in case your first choice cannot serve.

Under Wisconsin Law, a properly executed and witnessed Last Will and Testament is the only legal way to nominate a guardian for minor children upon your death.

2. Create a Will or Trust

A Last Will and Testament or Trust is one of the foundational documents in an estate plan. These documents address how certain assets should be distributed.

Without a Will or Trust, your estate may be distributed according to the state's intestacy laws. Those laws determine who inherits based on statutory rules—not necessarily according to the plan you would have chosen yourself.

Creating a will gives you an opportunity to put your wishes in writing.

We also recommend considering a trust for children until they are older and capable of managing their own finances. Leaving money directly to a young child is almost never the best way to structure an inheritance. A trust can provide a way to manage assets for a child while giving you greater control over how and when those assets are used.

For example, parents may want funds to be available for:

Health care
Education
Housing
Everyday living expenses
Other needs as the child grows

A trust will identify a person or institution responsiblefor managing the assets according to the trust's terms.

Even if you don’t have much in assets now, life insurance proceeds or other family situations may still make a trust the correct route to take.

3. Review Your Beneficiary Designations

Establishing a Will or Trust is just the first step. Beneficiaries on assets also need to be reviewed.

Certain assets—including many retirement accounts and life insurance policies—pass according to beneficiary designations. That means it's important to review the beneficiaries listed on your accounts and insurance policies and make sure they align with your overall estate plan. Depending on your planning and the type of asset, beneficiaries are typically either your children or your Trust. This decision should be reviewed with your attorney as it has important implications for both taxes and how the money will be managed.

For young families, beneficiaries should be reviewed and updated after major life changes such as:

Getting married
Having a child
Getting divorced
Remarryin
Losing a beneficiary
Purchasing life insurance
Changing financial institutions

An estate plan can be thoughtfully prepared but still produce unexpected results if beneficiary designations aren't coordinated.

4. Think About Incapacity Planning

Estate planning isn't only about what happens after death.

Parents should also consider what would happen if they became temporarily or permanently unable to make financial or medical decisions. Documents such as a durable power of attorney and advance health care directives can help address these situations. Under Wisconsin estate planning laws, these documents can allow you to designate trusted people to make certain decisions on your behalf. For parents of young children, incapacity planning can be particularly important because your family may need someone who can handle financial matters while also helping ensure your children's needs continue to be met.

5. Make Sure Your Life Insurance Fits Your Family's Needs

For many young families, life insurance can be an important part of financial planning.

If one parent or both die unexpectedly, the surviving family may face expenses such as:

Mortgage or rent
Child care
Education
Everyday living cost
Debts
Lost income

The appropriate amount and type of coverage depend on your family's circumstances. Your estate planning attorney and financial professional can help you consider how life insurance fits into your broader financial and estate plan.

6. Keep Your Estate Plan Updated

Creating an estate plan is not necessarily a one-time event.Your family's circumstances can change significantly over the years. When thathappens, your estate plan may need to change also. Consider reviewing your estate plan after major events such as:

The birth or adoption of a child
The birth or adoption of a child
Marriage or divorce
A significant change in your finances
Buying or selling a home
Moving to another state
The death or incapacity of a beneficiary or chosen guardian
Changes in your family relationships

Even if nothing major has changed, periodic reviews can helpmake sure your documents continue to reflect your wishes and comply withcurrent law.

What Happens If Young Parents Die Without an Estate Plan?

When parents die without an estate plan, their family mayhave to navigate court proceedings and Wisconsin state laws while dealing withan already difficult loss.

The outcome can depend on several factors, includingWisconsin law, family circumstances, the assets involved, and whether theparents left legally effective beneficiary designations or other documents.

Most importantly, without a properly prepared plan, you may not have the same ability to communicate your preferences regarding guardianship and the management of assets for your children. A court will decide who will become the guardian for your children and how their funds will be managed. Creating an estate plan gives you an opportunity to make those decisions in advance and control the process.

Estate Planning for Young Families: A Simple Starting Checklist

If you're ready to start planning, consider gathering anddiscussing:

A list of your major assets and debts
Life insurance information
Retirement account information
Existing wills or trusts
Current beneficiary designation
Names of potential guardians
Names of people you trust to handle financial or medical decisions

The process is simple

Contact our office, and we will provide you with a worksheet to start gathering this information.
Schedule a conversation with an experienced estate planning attorney. We’ll take it from there.

Protect What Matters Most

You may not be able to predict what the future holds. Butyou can take steps today to make sure your family has a plan.

Contact this article’s author Attorney Amanda N. Sacks at amanda@schloemerlaw.com or one of our estate planning attorneys at info@schloemerlaw.com to schedule an estate planning consultation. Our attorneys can help you understand your options and create a plan designed to protect your family and your future. We’ll walk you through every step along the way.

Originally published: September 23, 2026

Estate Planning for Young Families: What Every Parent Should Know About Estate Planning

Why Estate Planning Matters for Young Parents under Wisconsin Law

What Happens If Young Parents Die Without an Estate Plan?

Estate Planning for Young Families: A Simple Starting Checklist

Protect What Matters Most

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