Estate Planning When Expecting: A Guide for New Parents

Your life priorities will completely change when you discover that you will have a child. Your health needs to become your top priority while you also need to create a strategy for their safety and upcoming life prospects. New parents tend to forget about estate planning after their child birth although this step serves as an essential part of their preparation process.

Without an estate plan, here is what happens if both parents die unexpectedly:

• The court selects a guardian who will take care of your child through a process which involves a judge who must decide which person will become your child’s guardian. The complete process stretches out for several months which leads to your child needing to stay in foster care until they find a permanent home.
• Provincial intestacy laws distribute your assets, Your estate is divided according to a formula that may not match your wishes. Learn about the consequences of dying without a Will.
• No one has legal authority to manage finances, The absence of a Power of Attorney document prevents your family members from accessing your bank accounts and handling your mortgage payments and other personal affairs during your incapacity.

Estate planning when expecting is not about contemplating worst-case scenarios, it is about ensuring your child is protected no matter what. Learn about the importance of a Will for new parents by reading our article which explains why parents should create their first Will after their child arrives.

New parents should develop a complete estate plan which requires them to create three essential documents:

Our guide provides you with a full list of required documents together with their associated expenses.

Parents who become new to parenting need to write their first Will so they can choose guardians who will care for their children. Here is what you need to consider:

Choosing a Guardian

The selection process for guardianship requires you to evaluate these factors:

• Values and parenting style. Does this person share your views on education, discipline, religion, and lifestyle?
• Relationship with your child, Does your child already know and feel comfortable with this person?
• Age and health, Is the potential guardian physically and emotionally able to raise a child for the next 18 years?
• Financial stability. Can they absorb the additional costs of raising a child (even with financial support from your estate)?
• Location, Would your child need to move to a different city, province, or country?
• Willingness, Have you discussed this with the potential guardian? They must be willing to accept the responsibility.

Naming Alternate Guardians

You need to select at least one backup guardian who will step in when your primary guardian choice cannot fulfill their duties. Life circumstances change, your chosen guardian may have health issues, have moved abroad, or may simply feel unable to take on the responsibility.

Separating Guardian and Trustee Roles

You can choose someone to raise your child but you need to select a different person who will handle their financial inheritance. The system allows you to appoint a different trustee who will handle financial assets through a system which creates checks and balances. This document becomes useful when your selected guardian demonstrates excellent child care abilities but lacks financial management skills.

Children under 18 cannot legally inherit assets directly. The Public Guardian and Trustee of your province will take control of funds which you leave to minors without establishing a trust during their management process through fees and restrictions which you would not have chosen. You can control two vital elements through your Will’s testamentary trust system.

• Who manages the money, You name a trustee you trust
• What the money can be used for, Education, healthcare, housing, extracurricular activities
• When the child receives the remaining funds, You can set any age (e.g., 25 instead of 18), or stagger distributions (e.g., one-third at 21, one-third at 25, remainder at 30)

Our article about trust provisions for children contains all the necessary information to help you create your Will.

Use this checklist to ensure your estate plan is complete before your baby arrives:

1. Create or update your Will Name a guardian (and alternate guardian) for your child Name an Executor to manage your estate Include trust provisions for your child’s inheritance Specify how assets should be distributed
2. Create a Power of Attorney for Property/Finances Name someone to manage your financial affairs if incapacitated Ensure they can access bank accounts, pay bills, and manage investments
3. Create a Power of Attorney for Personal Care/Healthcare Directive Name someone to make medical decisions on your behalf Document your healthcare preferences in a Living Will
4. Review beneficiary designations Update RRSP, TFSA, and pension beneficiaries Review life insurance beneficiaries Consider whether you need additional life insurance
5. Organize important documents Store your Will, Powers of Attorney, insurance policies, and financial documents in a secure, accessible location Tell your Executor and guardian where these documents are kept Consider registering your Will so it can be found
6. Have conversations Discuss your guardian choice with the person you are naming Talk with your partner about your shared wishes Inform your Executor about their responsibilities; see our guide on how to help your Executor

You should make changes to your Will which you created before your pregnancy. The document which parents create before having children usually leaves out these elements:

• Guardian nominations
• Trust provisions for minor children
• Updated asset distribution reflecting your child’s needs
• Adequate life insurance considerations

The online Will service at LegalWills.ca lets you modify your Will through their platform without requiring payment for each update. You should also review your Will if you are expecting a second or subsequent child, as you may want to adjust guardian choices and distribution plans.

When should I create my estate plan, before or after the baby is born?

Before. Create your Will during pregnancy so your child is protected from the moment they are born. You can always update it after the birth to add your child’s legal name and adjust any provisions.

Do both parents need separate Wills?

Yes. Each parent should have their own Will. Couples who create Wills together will produce identical legal documents which function as separate agreements. People should avoid using Joint Wills because they generate legal problems through this single document which two people share.

What if we disagree on who should be guardian?

Couples face this common problem when they have conflicting opinions about guardian selection. The court will decide which guardian should take over when parents create different guardianship plans in their separate Wills and pass away at the same time. The process of selecting guardians needs to happen before you start drafting your Wills. You should talk about your essential values with each other before consulting a family mediator about the process.

Does my child automatically inherit everything if I die without a Will?

The situation does not always follow this pattern. Your spouse will get a fixed amount through provincial intestacy laws but the actual value varies between $50,000 and $200,000 based on regional laws. A single parent who passes away will leave all their assets to their children but the government will control these assets until the children reach their eighteenth birthday.

How much does estate planning for new parents cost?

At LegalWills.ca, you can create a complete estate plan, Will, Power of Attorney, and Living Will, for under $100. A lawyer would typically charge $1,000–$3,000+ for the same documents. See our full cost comparison guide.