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Educational content only. Not legal, financial, tax, or medical advice. Plan Your Passing is not a law firm and no attorney-client relationship is created here. Estate, probate, tax, and inheritance laws differ by country, state, and county. You are responsible for confirming what applies to you. Always consult a licensed attorney in your jurisdiction before acting on anything you read or generate on this site.

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Parents of minor children — under 40, just starting estate planning

Estate planning when you have small kids

You're not planning for your death yet. You're planning for theirs — specifically, that they have a guardian, financial care, and a roadmap if you and your partner are gone tomorrow. Different priority order.

The hardest thing

What this audience faces that nobody warns them about

The guardianship decision — who raises your kids if you and your partner are gone — is the hardest conversation most young parents have ever had. It's harder than choosing a spouse. Most couples postpone it for years. Don't.

Three things that are different for you

If you take nothing else away

01

Guardianship is the most important section of your will

Choose a primary guardian + a backup. Have a real conversation with both before you name them — 'will you' is a different question than 'will you raise my children.' Update if life circumstances change for either (illness, divorce, distance). Worth more time than the rest of the will combined.

02

Term life insurance is unromantic and essential

20-year term, $500K-$1M each parent, at 30-40 years old is roughly $20-$40/month. Pays out tax-free to the surviving parent (or to the trust for kids). Don't get whole-life unless your CPA has a specific reason. Term covers the 20 years that matter most.

03

A children's trust is better than direct inheritance to minors

Minors can't legally inherit significant assets. Without planning, the court appoints a conservator and the child receives the entire inheritance at 18. A revocable living trust (or testamentary trust within the will) lets you control timing — say, ⅓ at 25, ⅓ at 30, ⅓ at 35 — and pick a trustee who is NOT necessarily the guardian.

Young families need MORE planning than empty-nesters — the stakes are higher when kids are involved.

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