Last Updated on April 17, 2026
The moment you bring a child home, your responsibilities change overnight. Sleepless nights, feeding schedules, and pediatric appointments quickly become part of daily life. But there is one question many new parents rarely ask themselves.
What would happen to your child if something happened to you tomorrow?
Many first time parents focus on diapers and sleep schedules while overlooking an important legal question. If something unexpected happened, who would raise your child and how would their financial future be protected?
This is why estate planning for new parents becomes one of the most important steps families can take. At ND Estate Services, we guide families across North Dakota to create trusts, organize assets, and put clear plans in place to protect their children.
This blog explains how new parents can create an estate plan that names a guardian, protects a child’s inheritance, and provides a clear roadmap for their family’s future.
Many parents assume estate planning is something to think about later in life. In reality, planning often becomes most important right after a child is born.
Consider a common situation. A young couple in North Dakota has a newborn, a mortgage, and some savings. If both parents were to pass away unexpectedly without an estate plan, the court would decide who becomes the child’s guardian and how the parents’ assets are distributed.
During that process, financial resources may be tied up in probate while family members try to determine what the parents would have wanted.
Estate planning helps families avoid that uncertainty. Instead of relying on court decisions, parents can document who will care for their child and how financial resources will be managed.
Planning also addresses situations beyond death. If a parent becomes incapacitated because of illness or injury, estate planning documents allow trusted individuals to manage finances and make medical decisions. Families often create these plans early so responsibilities are clearly documented before a crisis occurs.
What Happens If There Is No Will
When someone dies without a will, state law determines how assets are distributed. This process is called intestate succession. In North Dakota, courts may appoint a guardian for a minor child and supervise the management of inherited assets until the child becomes an adult.
Under North Dakota Century Code §30.1-27, courts have authority to appoint guardians for minors and generally give priority to guardians nominated by a parent in a will when doing so serves the child’s best interests.
For example, if parents in Bismarck or Fargo pass away without a will, relatives may need to petition the court for guardianship. During that time, the court determines who will care for the child and how financial resources are managed.
Without an estate plan, parents lose the opportunity to guide those decisions themselves.
Choosing a guardian is often the most emotional part of estate planning for new parents. A guardian is the person who would raise your child if both parents pass away or become unable to provide care.
When evaluating potential guardians, parents typically consider several factors:
- emotional stability and parenting style
- the existing relationship with the child
- geographic location and living environment
- financial stability and willingness to assume responsibility
Many families also name an alternate guardian in case their first choice cannot serve when needed.
What Happens If You Do Not Name a Guardian
If parents do not nominate a guardian, a court must appoint one. Relatives may step forward and request the role, but disagreements sometimes arise when multiple family members believe they should serve as guardian.
Judges evaluate what arrangement best serves the child’s interests by considering family relationships, stability, and the ability to provide long term care.
Court proceedings can also delay decisions while family members present their requests for guardianship. Naming a guardian ahead of time helps prevent those delays and provides clarity for relatives who may step in to support the child.
Another important part of estate planning for new parents involves protecting the financial resources intended to support a child’s future.
Children cannot legally control inherited assets. Because minors cannot manage property directly, a guardian or trustee must oversee those assets until the child becomes an adult.
In North Dakota, courts may supervise financial assets left directly to minors until they reach adulthood. This can require guardians to seek court approval before using funds for certain expenses.
How Trusts Protect a Child’s Inheritance
Many new parents use trusts to manage assets intended for their children.
A trust allows parents to place assets under the control of a trustee. The trustee manages the funds according to instructions created by the parents.
Trust funds may be used for:
- education expenses
- healthcare needs
- housing or living costs
- milestone distributions at specific ages
For example, a couple in Grand Forks with a toddler and a newborn created a trust that distributes funds gradually as their children grow older. If something happens to the parents, the trustee manages education costs, healthcare expenses, and living support without requiring court supervision.
Parents may also structure distributions over time, such as releasing portions of an inheritance at ages 25, 30, or later.
Avoiding Probate Delays
Many families want to simplify what happens after death and reduce the legal burden on loved ones. Probate is the court supervised process used to distribute assets after someone passes away.
North Dakota probate procedures are governed by North Dakota Century Code Title 30.1, which outlines how estates are administered and how personal representatives are appointed.
Probate proceedings can take months depending on the complexity of the estate. For families raising young children, delays in accessing financial resources can make an already difficult situation even more stressful.
How Probate Can Affect Families With Minor Children
When assets must pass through probate, the personal representative may need court approval before making certain financial decisions.
For example, if funds intended for a child are tied up in probate, guardians may need approval before using those funds for housing, school expenses, or healthcare.
That’s why many North Dakota families choose trusts because assets placed in a trust can often pass directly to beneficiaries without going through probate.
Estate planning also helps parents protect their child’s long term financial future. Many families often combine several planning tools to create a financial safety net for their children.
Common estate planning tools include:
- revocable living trusts that manage assets for children
- life insurance policies that replace lost income
- beneficiary designations on retirement accounts
- custodial savings accounts used for education planning
When used together, these tools help ensure that children continue receiving financial support even if unexpected circumstances arise.
Parents must also select a personal representative, sometimes called an executor.
This individual carries out the instructions in the estate plan and manages administrative responsibilities after death.
Typical responsibilities include:
- organizing financial records and documents
- paying debts and taxes
- filing probate paperwork
- distributing assets according to the estate plan
Choosing the right personal representative helps ensure the estate plan is carried out smoothly and according to the parents’ wishes.
Many financial accounts allow individuals to name beneficiaries who receive assets directly after death.
Examples include:
- retirement accounts
- life insurance policies
- investment accounts
- transfer on death property designations
Many of these accounts were opened before children were born. Because of that, beneficiary designations may not reflect the family’s current priorities.
Reviewing and updating these designations helps ensure financial resources support your child.
Parents in North Dakota often begin estate planning by addressing a few important questions:
- Who should serve as guardian for your child?
- Should your child’s inheritance be placed in a trust?
- Who will manage finances if you become incapacitated?
- Do your life insurance policies support your child’s future needs?
- Are beneficiary designations updated to reflect your child?
Answering these questions helps parents build a clear estate planning strategy that protects their children and avoids confusion in the future.
Parents want certainty that their children will be protected no matter what the future holds. Estate planning allows families to create that certainty.
Through thoughtful planning, parents can nominate guardians, organize financial resources through trusts, and create clear instructions for the people who may care for their child.
ND Estate Services works with families across North Dakota to create estate plans that help parents protect their children, organize assets through trusts, and reduce probate complications.
Planning early helps families create stability, clarity, and long term protection for the people who matter most. Schedule your consultation with Mark today