Overlooked: 12 Estate Planning Essentials for Your Kids

July 9, 2025

Estate planning may not be your favorite parenting task, but it’s one of the most important things you can do to protect your children’s future. Too often, families delay these decisions, assuming they can deal with them later or believing that estate planning only matters for the wealthy. The truth is, every parent—regardless of income—needs a clear plan for who will care for their children and how their finances will be handled in the event of the unexpected. By tackling these estate planning essentials now, you give your kids the security, clarity, and stability they’ll need if something ever happens. Here are 12 critical steps you might be overlooking—and why they matter more than you think.

1. Naming a Legal Guardian

If you haven’t legally named a guardian, the courts will decide who raises your kids if you pass away. This essential decision should reflect someone who shares your values, parenting style, and commitment. Talk to your chosen person beforehand to make sure they’re willing and prepared. You can also name a backup in case your first choice is unable to serve. Including this in your will is one of the most important estate planning essentials for your family.

2. Writing a Will

A will outlines your wishes for your children, your property, and how your estate should be handled. Without one, your assets will be distributed based on state law, which may not align with your intentions. A well-written will ensures that your kids receive what they need and that trusted individuals handle your affairs. It also speeds up the legal process during an already stressful time. Even a basic will can offer major peace of mind.

3. Setting Up a Trust

A trust allows you to manage how and when your children receive money or assets. It can help avoid probate, protect inheritance, and ensure funds are used for education, housing, or other needs. Appointing a trustee to oversee the trust adds another layer of protection. This is especially helpful if your children are still minors or if you want to avoid handing them a large sum at 18. Trusts may sound complicated, but they’re a practical estate planning essential for parents.

4. Choosing a Financial Power of Attorney

A financial power of attorney gives someone you trust the legal ability to manage your finances if you become incapacitated. This person can pay bills, access accounts, and make investment decisions on your behalf. Without this in place, your family may need to go through court to handle your money. Pick someone financially savvy and dependable. It’s a simple but powerful way to protect your kids’ financial future.

5. Establishing a Medical Power of Attorney

If you’re unable to make medical decisions, who will speak for you? A medical power of attorney ensures your chosen representative can advocate for your wishes in emergencies. This prevents confusion and delays during critical health events. It’s especially important if your children are too young to make decisions or if you’re a single parent. It’s one of those estate planning essentials that’s easy to set up but often forgotten.

6. Updating Beneficiary Designations

Life insurance, retirement accounts, and investment accounts all have designated beneficiaries. If you forget to update these, your money might go to the wrong person—even if your will says otherwise. Make sure your designations reflect your current wishes, especially after major life changes like marriage, divorce, or the birth of a child. Review these documents annually to keep everything accurate. It’s one of the easiest ways to ensure your estate plan is truly working for your kids.

7. Purchasing Adequate Life Insurance

Life insurance isn’t just about replacing income—it’s about making sure your kids are cared for no matter what. It can cover childcare, education, housing, and other ongoing needs. If you’re a stay-at-home parent, don’t skip this step—your contributions have real value too. Term life insurance is affordable and often enough for most families. This is one of the most practical estate planning essentials to protect your children’s financial security.

8. Writing a Letter of Intent

A letter of intent isn’t a legal document, but it adds clarity and personal insight to your estate plan. It can include your hopes for your children, preferences for their upbringing, and instructions for their daily routines. This helps guardians or caregivers make decisions in your absence with your values in mind. It can also help explain any unusual choices in your will or trust. Think of it as your voice, continuing to guide them even if you’re not there.

9. Planning for Digital Assets

Your online accounts, including email, banking apps, and social media, are part of your digital estate. Make a list of important accounts, passwords, and instructions for managing them. Some platforms let you assign a digital legacy contact to handle your data after you’re gone. Without a plan, loved ones may struggle to access or close accounts. Don’t overlook this modern addition to estate planning essentials.

10. Including Special Needs Provisions

If you have a child with special needs, your estate plan requires additional care. Government benefits like SSI and Medicaid can be jeopardized by an inheritance. A special needs trust allows you to provide support without affecting eligibility. Be sure to work with a professional familiar with these issues. This type of planning is critical to your child’s long-term well-being.

11. Communicating the Plan Clearly

An estate plan only works if people know about it. Talk with your chosen guardians, trustees, and powers of attorney so they understand their roles. Store your documents in a secure but accessible place and tell trusted individuals where to find them. Open communication now can prevent confusion, conflict, or delays in a crisis. Estate planning essentials aren’t just paperwork—they’re part of a larger family conversation.

12. Reviewing and Updating Regularly

Life changes, and so should your estate plan. Births, deaths, moves, and job changes can all impact your decisions. Set a reminder to review your plan every one to two years. Making small updates over time is easier than starting over later. An outdated plan can create as many problems as having no plan at all.

Planning Today to Protect Tomorrow

Estate planning isn’t just for the elderly or the ultra-wealthy. It’s for parents who love their kids and want to make sure they’re protected, no matter what life brings. By taking care of these often-overlooked estate planning essentials, you create a roadmap for your family’s security and peace of mind. You’re not just planning your legacy—you’re actively shaping a safer, more stable future for your children. And that’s a gift worth giving.

Which estate planning essentials have you tackled already, and which ones are still on your to-do list? Let us know in the comments!

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