Estate Planning for New Parents in Lockport and Will County
New parents need three things in place: a named guardian for your child, a plan for who manages money left to your child, and beneficiary forms that match. Under 755 ILCS 5/11-5, an Illinois parent can name a guardian in a will or another signed writing, with two adult witnesses.
Start with the guardian
The question parents lose sleep over is simple. If something happened to both of us, who would raise our child? Illinois lets you answer it in writing. Under 755 ILCS 5/11-5(a-1), a parent may designate a person to be guardian of the person or the estate of an unmarried minor, or of a child likely to be born. That designation can go in any writing, including a will.
The law sets simple rules for how it is signed:
- Two or more credible witnesses, each at least 18, must witness it.
- The person you name cannot be one of the witnesses.
- If it is signed and witnessed like a will, it carries prima facie validity.
- You may also name a successor guardian in case your first choice cannot serve.
- The designation does not affect the other parent's rights.
A judge still makes the appointment, and 755 ILCS 5/11-5(a) says the court acts based on what is in the minor's interest. The written choice matters because it tells the court what you wanted. For more, see guardian for minor children.
Money for a child
A young child cannot manage money. If a child is named directly as a life insurance beneficiary or as an heir, the court may need to appoint a guardian of the child's estate under 755 ILCS 5/11-5(a). That takes time and paperwork, and the money may be released on a schedule you never chose.
You have a few ways to handle it:
- A trust for the children, with a trustee you pick and ages you set for payouts.
- A custodianship under the Illinois Uniform Transfers to Minors Act. For gifts under that Act, the custodianship ends when the child turns 21 (760 ILCS 20/21).
- Beneficiary forms that name the trust, not the child.
A trust usually gives you more control over timing and use. A custodianship is simpler. Which one fits depends on how much there is and how you feel about a young adult getting it all at once. See revocable living trusts for the trust side.
Beneficiary forms
Many parents sign a will and forget the forms that control the biggest assets. Life insurance, workplace retirement plans, IRAs and some bank accounts pass to the person on the form, whatever the will says. Check each one.
- Name your spouse first and name a backup.
- Do not name a minor child as the backup. Name a trust for the child instead.
- Match the form to your will so that the two do not fight each other.
- Look at how much life insurance you carry while you are at it, since the answer may change with a child.
Get your plan done. Call Jeff.
Tell Jeff about your family, your home and what you want to happen. He'll explain the next step.Office hours: Monday to Friday 8:30 AM to 6 PM, Saturday 10 AM to noon. After hours, leave your name, number and the best time to call back.
Jeff McCarthy, Inspired Law Group, 136 E 9th St, Lockport, IL 60441
The documents in the plan
A starter plan for new parents often has these pieces, though what you need depends on your family.
- A will that names the guardian, an executor and backups.
- A trust for the children if you want control over the money.
- A property power of attorney and a health care power of attorney, so your spouse or another person can act if you are hurt.
- A living will.
Talk to the people you name
A guardian, a trustee and an executor are all asking for a lot. Ask each person before you write the name down. Tell them where your papers are kept. Ask what they would need to know about your child, such as doctors, school, routines and money.
Pick backups too. A person you name may move, get sick or change their mind. A plan with one name and no backup can fail on the first problem. Jeff builds in second and third choices so one "no" does not undo the plan.
If you are not married, or you are blended
Parents who are not married need to look closely at who has legal rights if one dies. Parents with children from earlier relationships have more to weigh. The pages on blended family planning and child custody cover those situations.
A simple order of steps
- Choose your guardian and a backup, and talk to them.
- Choose who will manage money for the children, and until what age.
- List your accounts and policies and look at each beneficiary form.
- Call Jeff to put it in writing.
- Sign, then keep a copy where your family can find it.
- Look at the plan again after each major change, such as a second child or a move.
Sources
Reviewed by Jeff McCarthy, Attorney, Inspired Law Group, 136 E 9th St, Lockport, IL 60441.
Questions people ask about new parents
Short answers first. Jeff McCarthy reviews every answer on this page.
Put it in a writing, such as your will, and have two adult witnesses sign it. Under 755 ILCS 5/11-5(a-1), the person you name cannot be one of the witnesses.
No. A judge makes the appointment. A written designation tells the court who you wanted, and a designation signed like a will carries prima facie validity.
You can, but a young child cannot manage the money. A court may need to appoint a guardian of the estate. Many parents name a trust for the child.
For gifts under that Act, the custodianship ends when the child turns 21, under 760 ILCS 20/21.
Often yes. Many trust plans use a will to catch anything left out of the trust and to name a guardian.
Pick a guardian and a backup, then look at your beneficiary forms. Those two steps have the biggest effect if something happens early.
Keep reading
Ready for clarity, direction, and legal protection? Fill out the form and let’s begin.
Every case comes down to its facts and its deadlines. Talk with Jeff McCarthy so you can:
- Get clear on your legal options.
- Avoid costly mistakes.
- Know what happens next, and when.
