The birth of a child changes everything, including how you should think about estate planning. Many new parents in Illinois assume estate planning can wait until later in life, but the reality is that the earliest years of parenthood are often when planning matters most. Your child now depends on you not only for care and guidance, but also for financial security and legal protection if something unexpected happens. Estate planning gives you a way to make thoughtful decisions now, rather than leaving critical choices to the courts later.
Illinois law provides clear rules for what happens when someone passes away without a plan, but those default rules are rarely ideal for young families. They do not account for your personal values, your parenting wishes, or the people you trust most. Taking steps soon after your child is born allows you to protect your family, reduce uncertainty, and create a foundation that can be updated as your family grows.
One of the most important steps for new parents is naming a legal guardian. In Illinois, if both parents pass away without a valid nomination of a guardian, the court will decide who assumes that role under 755 ILCS 5/11-5. While courts act with the child’s best interests in mind, they do not know your family dynamics the way you do.
By formally naming a guardian in your will, you can identify the person you believe is best suited to raise your child. You can also name alternate guardians in case your first choice is unable or unwilling to serve. This decision alone often brings significant peace of mind to new parents.
A will is the cornerstone of most estate plans. Under Illinois law, a will allows you to direct how your property is distributed and who will manage your estate after death. Without a will, Illinois intestacy laws under 755 ILCS 5/2-1 determine who inherits your assets, which may not align with your intentions.
For parents, a will also works together with guardian designations and instructions for minor children. It ensures that assets intended for your child are identified clearly and distributed according to your wishes, rather than by default statutory formulas.
Many parents are surprised to learn that leaving assets directly to a minor can create complications. Under Illinois law, minors cannot legally manage inherited property. If a child receives assets outright, the court may need to appoint a guardian of the estate to manage those funds.
Establishing a trust allows you to control how and when assets are used for your child’s benefit. Trusts can provide funds for education, healthcare, and living expenses while delaying full control until your child reaches an age you consider appropriate. Trusts are governed by the Illinois Trust Code, including 760 ILCS 3/ provisions, which offer flexibility and long-term protection.
After a child is born, beneficiary designations on life insurance policies, retirement accounts, and payable-on-death accounts should be reviewed. These designations override instructions in a will, which means outdated beneficiaries can disrupt even a well-drafted estate plan.
Parents often choose to name a trust as beneficiary rather than a minor child directly. This approach ensures that funds are managed responsibly and in line with the broader estate plan. Regular reviews help keep everything aligned as circumstances change.
Estate planning is not only about what happens after death. Illinois law allows you to plan for incapacity through powers of attorney. A power of attorney for healthcare under 755 ILCS 45/4-1 allows you to name someone to make medical decisions if you are unable to do so. A power of attorney for property under 755 ILCS 45/2-1 addresses financial decisions.
For new parents, these documents ensure that someone you trust can manage matters without court intervention, keeping stability for your child during difficult times.
An estate plan should evolve as your family grows. Additional children, changes in finances, and moves within Illinois may all require updates. Starting early gives you a strong base that can be adjusted rather than built from scratch later.
Yes. Estate planning for new parents is about guardianship, decision-making, and protection, not just wealth. Even families with modest assets benefit from clear instructions and legal safeguards.
Illinois law allows parents to nominate guardians, but courts generally prefer to keep siblings together. If there is a reason to consider different guardians, it should be discussed carefully within the plan.
If no estate plan exists, Illinois law determines guardianship and asset distribution. This can result in delays, added costs, and outcomes that may not reflect your wishes.
Plans should be reviewed every few years or after major life changes. Births, deaths, moves, and financial changes are all reasons to revisit your documents.
No. Trusts are practical tools for protecting minor children and managing assets responsibly, regardless of overall wealth.
Welcoming a child is the right time to take active steps to secure your family’s future. Let Orlowsky & Wilson help you create an estate plan that reflects your values and protects what matters most. Take the first step today to ensure your child’s well-being and your peace of mind.
Contact our Lincolnshire estate planning lawyers at Orlowsky & Wilson (847) 325-5559 to schedule a consultation. Serving Lincolnshire and the Chicago area, we are here to help your family plan with clarity and confidence. Don’t wait—reach out now and give your family the protection they deserve.
