Estate Planning for Young Families: Protecting Your Loved Ones and Your Legacy

When you’re in the thick of raising a family – balancing work, school runs, and sleepless nights – estate planning probably isn’t top of your to-do list. But here’s the thing: if you have kids, a mortgage, or even just a bit of superannuation, having a solid estate plan in place is one of the most important things you can do to protect your family’s future.

What Is Estate Planning?

Estate planning is about ensuring your assets – like your home, savings, superannuation, and even life insurance – go where you want them to after you’re gone. 

More importantly for young families, it also allows you to nominate guardians for your children and ensure their financial needs will be looked after if you’re no longer around.

It’s not just something for the elderly or wealthy. It’s a practical step every parent should take.

Why It Matters

Without a valid will or estate plan, the government decides who gets what—and who looks after your children. That might not line up with what you would have wanted. It can also lead to delays, extra legal fees, and unnecessary stress for your loved ones during an already emotional time.

Estate planning lets you stay in control, even when you’re not there.

Key Elements for Young Families

Here are the main parts of an estate plan that matter most for parents of young children:

1. A Valid Will

Your will sets out who should inherit your assets and who will act as executor (who handles your estate). Most importantly, you can use your will to nominate a guardian for your children. Without this, a court will decide who takes on that role.

2. Enduring Power of Attorney & Guardian

If you’re ever unable to make decisions for yourself, due to illness or injury, these legal documents allow someone you trust to step in and manage your finances or make medical decisions on your behalf.

3. Life Insurance and Superannuation

Your super and life insurance are often two of the largest assets you have when you’re younger. These don’t automatically follow your will, so reviewing and updating your beneficiary nominations is important to ensure your partner or children are provided for.

4. Setting Up a Testamentary Trust (Optional)

If you want more control over how your children receive their inheritance—such as delaying access until they reach a certain age or protecting funds for education—a testamentary trust can be a great option. It can also help reduce tax on earnings from the inheritance.

Getting Started

Estate planning might sound daunting, but it doesn’t have to be. A simple will and power of attorney can be put in place quickly and adjusted as your circumstances change. It’s about making thoughtful choices now to safeguard your family’s future.

For young families, estate planning is an act of love and responsibility. It’s a way to make sure your children are cared for, your partner isn’t left overwhelmed, and your wishes are respected – no matter what life throws your way.

IMPORTANT NOTICE

This blog post contains general information only and has been prepared by Allworths without reference to your objectives, financial situation or needs. Allworths cannot guarantee the accuracy, completeness or timeliness of the information contained here. By making this information available to you, we are not providing professional advice or recommendations. Before acting on any of the information contained here, you should seek professional advice.