Estate Planning for Young Families

Reviewed by Turner Henington, attorney, Texas Bar No. 24148206 · Updated October 2026

Most new parents put estate planning off because it feels like something for later. It is actually most important now: young children can’t take care of themselves or their money, and life insurance can put a large sum in their hands overnight. Henington Lewis Law Firm PLLC helps parents in Austin and Travis, Williamson and Hays Counties make these decisions once, in writing, so a court and a family argument never have to.

What Happens to Your Children If You Don’t Have a Plan?

Choosing a Guardian for Your Children

Texas lets you name a guardian of the person, who raises your children, and handle their money separately through a trust and trustee. They can be the same person or different people. Things to consider:

• Values, parenting style and religious beliefs.
• Where they live, and whether your children would have to change schools or move away from family.
• Age, health and energy, and their own family situation.
• Whether they’re good with money, or whether a different person should be trustee.
• A backup, in case your first choice can’t serve.

You can name a guardian in your will, or in a separate written declaration that is signed and either handwritten or witnessed by two people age 14 or older who aren’t named in it (Estates Code § 1104.152). A declaration can also cover what happens if you become incapacitated, not just if you die. You can also say who should not serve.

A note for separated or divorced parents: if your child’s other parent is alive and able, a Texas court will usually give that parent custody. You can’t usually prevent that in a will, but you can control who manages your children’s money by leaving it in a trust.

What a Young Family’s Estate Plan Includes

How Much Life Insurance and How Should the Trust Pay It Out?

We don’t sell insurance, but we see the result when there isn’t enough. Many parents carry term life insurance to cover the mortgage, child care and college. The trust then decides how that money is used. Common choices:

• One “pot” trust for all the children until the youngest reaches a set age, so money can go where it’s needed, much as parents spend unevenly on each child.
• Separate trusts for each child once the youngest reaches that age.
• Staggered distributions, such as a third at 25, 30 and 35, or a lifetime protective trust that the child manages as an adult.

Common Mistakes Young Parents Make

• Naming the children directly as life insurance or account beneficiaries.
• Choosing a guardian without asking them.
• Naming a couple as guardians without saying what happens if they divorce.
• Relying on a will made before the children were born.
• Not naming a backup guardian or trustee.

Who Will Prepare Your Plan

Turner Henington and Samantha Lewis founded Henington Lewis Law Firm, and one of them works on every plan we write. Turner is a former KPMG tax accountant and a graduate of The University of Texas School of Law. Samantha has nearly a decade of experience in Texas and federal courts and handles estate disputes, so she drafts with an eye to how plans get challenged. Our office is at 1101 S. Capital of Texas Hwy, Bldg G, Suite 150-C, near West Lake Hills, and we also meet by phone and Zoom.

What Our Clients Say

Estate Planning for Young Families FAQ

How do I name a guardian for my children in Texas?

You can name a guardian in your will or in a separate written declaration. The declaration must be signed and either written entirely in your handwriting or witnessed by two people age 14 or older who aren’t named as guardian. The court must appoint the person you name unless they are disqualified or it wouldn’t be in the child’s best interest.

What happens to my kids if I die without a will in Texas?

If both parents have died, a court decides who raises your children, and relatives can ask to be appointed. Your children’s inheritance is generally managed under court supervision until they turn 18 and then paid to them outright.

Should the guardian and the trustee be the same person?

They can be, but they don’t have to be. Many parents choose a loving relative to raise the children and a different person who is good with money to manage the trust, so there’s a check on how the money is spent.

Can I name my children as beneficiaries of my life insurance?

You can, but you usually shouldn’t. A minor can’t receive the money directly, so a court process may be needed. Name your children’s trust as beneficiary instead.

At what age should my children receive their inheritance?

It’s your choice. Many parents keep the money in trust for education and support and then release it in stages, such as at 25, 30 and 35. Others keep it in a lifetime protective trust the child manages as an adult.

Do young parents need a trust or just a will?

A will can name guardians and create a trust for your children. A living trust also keeps your home out of probate and lets the same trust hold life insurance and accounts. If you own a home, a living trust is often worth it.

Can my ex-spouse control my children’s inheritance?

If your children inherit outright, a court may appoint their other parent to manage the money. Leaving it in a trust lets you name the trustee instead.

What’s a reasonable budget for estate planning as a young family?

Every plan we write is a flat fee, quoted in writing after a free consultation. The fee depends mainly on whether your plan is built around a will or a living trust and whether you’re single or married.

Do we need to update our plan when we have another child?

Usually not if your documents are written to cover all your children, including future ones. Review it anyway after each birth or adoption and every few years.

Sources and Texas Law Cited

The legal and tax statements on this page are based on the primary sources below. Laws and figures change, and this page was last reviewed in October 2026. This page is general information, not legal advice for your situation.

• Texas Estates Code § 1104.053 – Guardian designated by will or written declaration
• Texas Estates Code § 1104.152 – Requirements for a declaration of guardian
• Texas Estates Code ch. 1104 – Selection of guardians
• Texas Estates Code ch. 201 – Descent and distribution
• Texas Estates Code § 752.051 – Statutory durable power of attorney
• Texas Health & Safety Code § 166.164 – Medical power of attorney
• Texas Health & Safety Code § 166.033 – Directive to physicians

Keep Reading

• Estate Planning for Married Couples
• Estate Planning for Blended Families
• Estate Planning for Grandparents
• Estate Planning After Having Children
• Estate Planning in Your 40s
• When to Start Estate Planning in Texas
• Will vs. Trust in Texas
• Austin Estate Planning Attorney
• Estate Planning for Every Stage of Life