As parents, we do everything we can to protect our children. We buckle them into car seats, make sure they eat healthy, and teach them to look both ways before crossing the street. But one thing many parents overlook is estate planning with kids—a critical step in securing your child’s future if something unexpected happens.
Many families assume they don’t need an estate plan yet. Maybe you’re young and healthy, or you think your family would “figure it out” if something happened. The reality is, without a plan in place, the court—not you—will decide who raises your children and how your assets are handled.
Let’s go over what parents should know about estate planning with kids in Ohio, so you can make the best decisions for your family’s future.
Why Estate Planning is Essential for Parents
No one likes to think about worst-case scenarios, but planning ahead gives you control over what happens if the unexpected occurs. Here’s why having a solid estate plan is so important for parents:
✔️ Choosing a Guardian for Your Children – Without a legal plan, the court will decide who raises your children. A judge may choose someone you wouldn’t have picked yourself.
✔️ Avoiding Family Conflicts – Without clear instructions, family members may disagree over who should care for your kids or how your assets should be managed.
✔️ Ensuring Your Kids’ Financial Security – Minor children cannot legally inherit money or property outright. Without a plan, a court-appointed guardian will manage their inheritance, and they may gain full access at 18—ready or not.
Estate planning isn’t just about distributing assets—it’s about protecting your children and making sure they’re cared for by the right people.
Key Estate Planning Tools for Parents
1. Naming a Guardian in Your Will
One of the most important parts of estate planning with kids is naming a guardian—the person who will take care of your children if you pass away. If you don’t choose a guardian, the court will decide, and it might not be the person you would have wanted.
When picking a guardian, ask yourself:
✔️ Who shares your values and parenting style?
✔️ Who is financially stable and emotionally prepared for the responsibility?
✔️ Who has a strong, loving relationship with your children?
You can also name a backup guardian in case your first choice is unable to serve.
2. Setting Up a Trust to Manage Your Child’s Inheritance
Many parents don’t realize that children under 18 cannot directly inherit money or property. If you leave assets to your child in a Will, the court will appoint someone to manage the funds until your child turns 18. At that point, they receive full control—whether they’re ready or not.
A Trust is a smarter way to protect their inheritance. With a Revocable Living Trust or Minor’s Trust, you can:
✔️ Appoint a trusted person (a Trustee) to manage the funds until your child reaches a responsible age
✔️ Decide when and how the money is used (e.g., education, housing, medical expenses)
✔️ Prevent your child from receiving a large sum of money all at once at age 18
A Trust keeps your assets out of probate, meaning they’re passed to your children more quickly and with fewer legal fees.
3. Testamentary Trusts vs. Living Trusts: What’s the Difference?
- A Testamentary Trust is created within your Will. It only goes into effect after you pass away, but it does require your estate to go through probate.
- A Revocable Living Trust is created while you’re alive. It allows you to manage your assets now and ensures a smooth transfer of wealth to your children without probate.
For many parents, a Revocable Living Trust is the better choice because it avoids court involvement and provides flexibility as your family’s needs change.
4. Using Beneficiary Designations Wisely
A Trust isn’t the only way to pass assets to your kids. Beneficiary designations allow you to name specific individuals to receive assets like:
✔️ Life insurance policies
✔️ Retirement accounts (401k, IRA)
✔️ Payable-on-Death (POD) bank accounts
However, naming your child directly as a beneficiary can create problems, since minors can’t legally inherit these funds. Instead, you can list the Trust as the beneficiary, so the money is managed according to your instructions.
5. Planning for Incapacity
Estate planning isn’t just about what happens after you pass—it’s also about who makes decisions if you’re unable to. Parents should have:
✔️ Power of Attorney (POA) – Names someone to handle your financial affairs if you’re incapacitated.
✔️ Healthcare Power of Attorney – Names someone to make medical decisions on your behalf.
✔️ Living Will – States your end-of-life care preferences, so your family isn’t left guessing.
These documents ensure that if you ever become unable to make decisions, a trusted person is there to handle things without court involvement.
Common Estate Planning Mistakes Parents Make
Not having a plan at all – This leaves your children’s future in the hands of the court.
Naming the wrong guardian – Failing to choose wisely or not naming a backup can create unnecessary legal battles.
Leaving money directly to minor children – Courts will control the assets, and your child will receive everything at 18.
Failing to update your plan – Estate plans should be updated after major life events like marriage, divorce, new children, or financial changes.
Final Thoughts: Protecting Your Kids Starts Today
Estate planning is one of the most important things you can do for your children. It’s not just about money—it’s about ensuring they are cared for by the right people and that their future is secure.
If you’re a parent and don’t yet have an estate plan—or if you need to update one—we’re here to help. Our Cincinnati estate planning attorney can walk you through your options and create a plan that gives you peace of mind.
Don’t wait to protect your family’s future. Schedule a consultation today, and let’s create an estate plan that ensures your children are safe, financially secure, and cared for—no matter what.
