Young parents are the most likely to put off estate planning, and the most likely to need it. If you and your spouse both die without a will, a Pennsylvania court will appoint a guardian for your children and manage their inheritance under court supervision until they turn 18, at which point they receive everything outright. A simple estate plan lets you make those decisions yourself, on your terms. Here is what every Pennsylvania parent with minor children should have in place.
The Guardian Designation: The Most Important Reason to Have a Will
For parents of minor children, the single most important function of a will is the designation of a guardian, the person who will raise your children if you and your spouse both die before they are adults.
Without a will that names a guardian, a Pennsylvania court will make that decision. The court will consider the best interests of the child and may appoint a family member, but it may not be the person you would have chosen, and family members may disagree about who that should be. Guardian disputes can be emotionally devastating and expensive.
Choosing a guardian involves several considerations:
Values and parenting style: Who shares your values and approach to raising children? Geography matters less than character.
Age and health: A grandparent may be a meaningful figure in your children's lives but may not be the best choice to raise a child for the next 15 years.
Willingness: Have you talked to the person you are naming? Guardian designations come as a surprise to no one if the conversation has happened in advance.
Financial situation: A guardian does not need to be wealthy, that is what the trust is for, but their financial stability is relevant to the stability they can provide.
Backup designation: Name a successor guardian in case your first choice is unable or unwilling to serve.
Keeping Assets Out of a Child's Hands at 18
If you leave assets directly to a minor child, whether through a will, a beneficiary designation, or a life insurance policy — Pennsylvania law requires that those assets be held and managed by a court-appointed guardian of the estate until the child turns 18. At 18, the child receives everything outright.
Most parents do not want their 18-year-old receiving a significant inheritance with no strings attached. A testamentary trust, created within your will, solves this problem. You specify:
- Who manages the money (the trustee)
- How it can be spent (education, health, support, housing)
- When the child receives distributions
- What age they receive full control, commonly 25, 30, or in stages
The trustee and the guardian can be, and often should be, different people. The guardian handles day-to-day parenting; the trustee handles the money. Separating these roles creates a natural check on each.
Life Insurance: Funding the Plan
An estate plan for a young family is only as good as the assets available to fund it. Most young parents have limited accumulated wealth relative to the financial needs of raising children to adulthood.
Term life insurance is the most cost-effective way to ensure that your estate plan actually works, that there will be enough money to raise your children, fund their education, and provide financial stability for your surviving spouse.
A common planning benchmark is enough coverage to:
- Replace your income for the years until your youngest child is self-supporting
- Pay off the mortgage so the surviving family can stay in the home
- Fund anticipated education costs
The specifics depend on your income, your debts, your existing assets, and your family's needs. An attorney can help you think through the right coverage amount as part of the planning process, though the specific policy decisions are made with your financial advisor or insurance professional.
Name your trust, not your minor children directly, as the contingent beneficiary of life insurance policies. Naming a minor child directly creates the same court-supervision problem described above.
Powers of Attorney: Planning for Incapacity, Not Just Death
Young, healthy people tend to think of estate planning as planning for death. But incapacity, a serious accident, a sudden illness, a medical event that leaves you temporarily or permanently unable to manage your affairs, is statistically more likely during your working years than death.
Every Pennsylvania adult should have:
Durable Power of Attorney: Names an agent to manage your financial and legal affairs if you are incapacitated. Without one, your spouse may not have authority to handle financial matters in your name, and your family may need to go to court for a guardianship order.
Healthcare Power of Attorney: Names a healthcare agent to make medical decisions when you cannot. Your spouse has some default authority in Pennsylvania, but a healthcare power of attorney eliminates ambiguity and extends to situations where your spouse is also incapacitated.
Living Will / Advance Directive: Expresses your wishes about end-of-life treatment. This spares your family from making an agonizing decision without knowing what you would have wanted.
The "I'll Do It Later" Problem
Estate planning is the task that is always easy to defer because nothing bad has happened yet. But the cost of not having a plan is paid by the people you love, not by you.
A basic estate plan for a young Pennsylvania family, a will with a testamentary trust, a durable power of attorney, and healthcare documents for each spouse, can typically be completed in a matter of weeks and does not need to be expensive or complicated.
If you have children and no estate plan, the most important thing you can do is start. At Ament Law Group, our attorneys work with young families throughout Western Pennsylvania to put straightforward, effective estate plans in place. Contact us to schedule a consultation, no surprises.
This article is for general informational purposes only and does not constitute legal advice. Estate planning law varies by state; consult a licensed Pennsylvania attorney for guidance specific to your family's situation.
Related resources:
- How to Create a Will in Pennsylvania
- Understanding Powers of Attorney in PA
- PA Inheritance Tax Calculator
- Estate Planning Services
- PA Estate Planning Hub
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