Estate Planning When Expecting: A Guide for New Parents

Originally published: 29 October 2024 | Last updated: 26 February 2026

Why Do New Parents Need an Estate Plan?

TL;DR: New and expecting parents in South Africa must create an estate plan which will defend their children throughout their entire lives. The three essential documents consist of a Will which allows you to establish guardianship and asset distribution and a testamentary Trust which safeguards your children’s inheritance until they reach maturity and life insurance which offers financial protection. The court selects the person who will care for your children when you lack a Will while their inheritance remains unrestricted in the Guardian’s Fund until they reach 18 years of age.

The arrival of a new child into your family through birth or adoption or family merging creates one of the most thrilling life events. People often forget to handle their estate planning during their preparation process. Life brings unexpected events which estate planning protects your child through a system that provides both safety and financial support during emergencies.

How Do You Choose a Guardian for Your Child?

A Last Will and Testament together with a testamentary Trust and enough life insurance coverage form the basic estate plan which new parents need to establish. These documents work together to achieve two goals which involve selecting proper guardians for your child and establishing asset management procedures that will fund your child’s requirements.

New parents need to complete their estate planning process by naming guardians who will care for their children in their last will and testament. The court selects someone to care for your child when you don’t specify a guardian but their choice might not match your preferred candidate. The selection process for guardian candidates needs to evaluate these specific elements which determine their suitability.

• The potential guardian must practice child-rearing techniques which match your beliefs about education and religious practices and disciplinary methods. Your child needs to have established a bond with this individual before considering them as a potential guardian.Your child needs to understand how their life would develop inside a home where the guardian maintains their own children. The guardian’s marital status requires your approval because their spouse would participate in child-rearing responsibilities. The person must not have any legal basis which would prevent them from becoming a guardian. The guardian needs to handle all duties which include Trust financial management that you will establish through your Trust.
• The selection process demands you to pick between options which lack any perfect candidate yet you need to choose now instead of waiting for court intervention. You can always amend your Will if your circumstances or preferences change. You should pick another guardian who would take over when your first guardian choice either refuses to serve or becomes unavailable.
• A testamentary Trust is a Trust created through your Will that only takes effect upon your death. The document serves as an essential piece for parents who have children under 18 years old.
• Age control: Without a Trust, your child’s inheritance goes into the Guardian’s Fund managed by the Master of the High Court, and the full amount is released at age 18 ; with no conditions. Young people who receive large amounts of money without receiving any financial training will probably make poor decisions about how to spend their money. You can set particular rules for Trust fund distribution through conditional distribution which lets you establish educational cost fund release requirements at age 25 after degree completion.
• The Trustee you select will handle the funds based on your directions through proper investment practices and suitable fund distribution. The Trust assets stay safe from the claims which creditors of the beneficiary might make against them.
• Life insurance serves as the foundation which supports your estate planning system. When calculating coverage, consider:

Expense Category

Why Should New Parents Set Up a Testamentary Trust?

What to Consider

• Childcare and daily expenses
• The complete expense to raise your child until they reach 18 years of age includes costs for food and clothing and medical services and recreational activities.
• Education
• The school fees which students need to pay for their education from primary school until they reach university level. Private schooling in South Africa can cost R50,000–R200,000+ per year.

How Much Life Insurance Do New Parents Need?

Housing

Outstanding bond payments or rental costs for the guardian’s household.

What About Unborn or Future Children?

Debt

The estate needs to cover all outstanding debts which include home loans and vehicle finance and personal loans.

What Other Documents Should New Parents Consider?

Emergency fund

• The emergency fund provides extra money which you can use to handle sudden medical expenses and other unexpected financial emergencies.
• Make the Trust your life insurance policy beneficiary so the Trustee will safeguard the funds for your child instead of giving money to a child who has not reached maturity.
• South African law allows you to draft your Will to include children born after the Will is created. You can establish children as beneficiaries through two different methods which involve either stating “my surviving children” or “all children born to or legally adopted by me.” The system will automatically protect your future children through this system because it stops you from needing to modify your Will after every adoption or birth.

How Can LegalWills.co.za Help New Parents?

The LegalWills.co.za platform enables users to create Wills through its simple system which protects all children who exist now and those who will arrive in the future.