Estate planning may sound like something only the wealthy or elderly think about, but for first-time parents, it is essential (not just about assets, but about ensuring your child’s well-being, protecting your finances, and providing peace of mind).1
The primary benefit of an estate plan for a new parent is making sure your child is provided for financially if you pass away.2 But it goes far beyond finances. Without a plan, state laws will determine critical decisions around guardianship, financial security, and healthcare (decisions that may not align with your wishes at all).3
Naming a Guardian: The Most Urgent Step
One of the most urgent steps is naming a legal guardian. If something were to happen to you and your child’s other parent, without a legal guardian named in your estate plan, the decision of who raises your child could be left up to the court.4
Many parents assume a godparent fills this role, but in the eyes of the law, a godparent is not a legal designation5 (only a formally named guardian in a will carries legal weight). Without a proper will, you leave your child’s fate to a potentially lengthy and emotionally painful court battle.
Beyond the Will: Trusts, Beneficiaries, and More
A will is just the starting point. Updating beneficiary designations on accounts like 401(k)s, IRAs, and life insurance policies after your baby is born is a step that is easy to overlook (and potentially devastating if missed).6 These designations are legally binding contracts with the financial institution and completely override the instructions in your will.
In many states, minors under 18 cannot assume control of property given directly to them through an inheritance7 (making a trust a critical tool for ensuring funds are managed responsibly until your child is ready). A trust allows you to specify conditions, assign a trustee, and avoid the delays of probate entirely.1
The Reality: Most Parents Are Unprepared
Despite these stakes, 55% of Americans have no estate plan at all.8 Among adults aged 18 to 34, only 18% have a will, and the number rises to just 34% for those aged 35 to 44.2 The most common reason? Half of survey respondents said they simply haven’t gotten around to it.
Estate Planning Is an Act of Love
Perhaps most powerfully, estate planning isn’t about planning for the worst (it’s about preparing for the unknown and ensuring that your child’s future is protected, no matter what happens).9
As one estate planning attorney and new mother put it, creating or updating your estate plan isn’t just a legal task (it’s a heartfelt one, a way of saying “I’m thinking ahead, so my child is safe no matter what”.4
A new baby is the single most powerful reason to put a plan in place (and the best gift you can give to the child who depends on you entirely).
The content in this post is for educational purposes only and does not constitute financial, legal, or tax advice. The Baby Collective does not endorse any specific financial products or providers. Please consult a licensed financial advisor before making any decisions for your family.
References
1. Bolt Law Firm (2025, July 1). Essential steps for first-time parents to start estate planning this summer. boltlawfirm.com. https://www.boltlawfirm.com/blog/2025/july/protecting-your-finances-if-the-unexpected-happe/
2. Axelton, K. (2020, October 13). How to plan your estate as a new parent. Experian. https://www.experian.com/blogs/ask-experian/how-to-estate-plan-for-new-parents/
3. Estate Law Partners, LLC (2026, January 4). Just had a baby? Estate planning tips for new parents. estatelawpartners.com. https://www.estatelawpartners.com/blog/2026/january/just-had-a-baby-estate-planning-tips-for-new-par/
4. Snyder Law (2025, May 28). New baby, new priorities: How having a child changes your estate plan. snyderlawpc.com. https://www.snyderlawpc.com/new-baby-new-priorities-how-having-a-child-changes-your-estate-plan/
5. Frame & Frame Attorneys at Law (2024, January 9). Estate planning for new parents. frameandframe.com. https://frameandframe.com/blog/estate-planning-for-new-parents/
6. Bay Legal PC (2025, September 16). Just had a baby? The 4 estate planning steps every new parent in California must take. baylegal.com. https://baylegal.com/just-had-a-baby-the-4-estate-planning-steps-every-new-parent-in-california-must-take/
7. Samuel, Sayward & Baler LLC (2025, July 1). 5 ways having children changes your estate plan (and your life). ssbllc.com. https://ssbllc.com/5-ways-having-children-changes-your-estate-plan-and-your-life/
8. Williams Starbuck (2025, December 30). The importance of estate planning before your baby is born. williamsstarbuck.com. https://www.williamsstarbuck.com/the-importance-of-estate-planning-before-your-baby-is-born/
9. Ladies in Law (2025, May 20). Estate planning for new parents: A guide from a mom and estate planning attorney. theladiesinlaw.com. https://theladiesinlaw.com/estate-planning-for-new-parents/
10. Phelps LaClair (2025, November 17). Estate planning essentials when you have a new baby. plestateplanning.com. https://plestateplanning.com/estate-planning-essentials-when-you-have-a-new-baby/
