Estate Planning for Young Families in Virginia

Securing Your Children’s Future

Being a young parent means juggling daily priorities like work, childcare, and finances. It’s easy to put off long-term planning, especially something as daunting as estate planning. However, estate planning for young families in Virginia is one of the most important steps you can take to secure your children’s future. In Virginia, if you don’t have a proper plan in place, critical decisions about your kids’ guardians and your assets could end up in the hands of a court. Below, we break down why young parents need a will, how to name guardians for minor children, and other key planning tools that give millennial and Gen Z families peace of mind.

Why Young Virginia Parents Need an Estate Plan Early

Life is unpredictable. If something happened to you tomorrow, who would care for your children and manage their inheritance? Without an estate plan, those decisions will be made according to Virginia law rather than your wishes. For example, if you pass away without a will (known as dying intestate), your assets will be distributed under Virginia’s intestacy statutes. That means the state dictates who gets what. (Under Virginia Code § 64.2-200, a surviving spouse and children split the estate in a certain ratio if there are children from outside the marriage.) More importantly for young parents, no will means you haven’t officially named a guardian for your minor kids, leaving the courts to decide who raises them. In a worst-case scenario, relatives could end up in a dispute over guardianship, and a judge would have to pick someone based on the child’s “best interests” standard. That process can be emotionally draining for your family and might not result in the person you would have chosen.

Virginia law tip: Virginia Code § 64.2-200 outlines the default descent and distribution when someone dies without a will. By creating an estate plan, you take control back from these default rules and ensure your choices guide your children’s care and inheritance.

Estate planning is not just for the wealthy or the elderly. A common misconception is that only those with large estates or older individuals need a plan. In reality, anyone with children or assets can benefit from an estate plan. Even a modest estate likely includes life insurance, a home, or retirement accounts—assets that need to be managed wisely for your family’s benefit. Starting early allows you to adapt your plan as your family grows and your financial situation changes. It’s much easier (and often less expensive) to put a basic plan in place now than to deal with the consequences of not having one later.

In summary, young parents need a will to protect their children. A will lets you specify who should care for your kids if you and the other parent are no longer able to. It also lets you direct money or property to trusted individuals or trusts for your children’s benefit. Without a will, a Virginia court will appoint a guardian and distribute assets under state law. These defaults might not align with what you want for your family. Simply put, a will is the cornerstone of any young family’s estate planning effort, providing clarity and security for the future. (You can learn more about creating a will on our Virginia Wills page.)

Naming Guardians for Minor Children in Your Will

One of the most urgent reasons to set up an estate plan as a young parent is to name a guardian for your minor children. Under Virginia law, every parent may appoint a guardian for their child in their will. This typically includes a guardian of the person to raise your children if neither parent is able to do so, and you can also designate a guardian of the estate to manage any money or property you leave to your kids. (Virginia law explicitly allows this: Va. Code § 64.2-1701 lets a parent appoint a guardian of the person and a guardian for the child’s estate in their will. A guardian of a minor’s estate has custody and control of the child’s inheritance.) Often, the same person or couple serves both roles, but you might choose different individuals—for example, someone to provide loving daily care and someone else with financial expertise to handle the children’s inheritance.

Choosing a guardian is a deeply personal decision. Think about who shares your values and parenting style, and who would be willing and able to take on the responsibility. Consider factors such as:

Trust and values: Does the person share your moral values, parenting philosophy, and general outlook on life?
Age and health: Are they young and healthy enough to care for your children until adulthood?
Location and stability: Would your kids have to relocate? Is the person’s home environment stable and suitable?
Existing family responsibilities: Do they have other children or commitments that might make caring for your kids challenging?
Relationship with your children: Are your kids comfortable with them and do they have a strong, positive bond?

It’s also wise to name an alternate guardian in case your first choice can’t serve when the time comes. Always talk to potential guardians in advance to make sure they are prepared to serve. The conversation may be tough, but it’s crucial to ensure your chosen guardian is on board and to discuss your wishes for your children’s upbringing.

By documenting your guardian choices in a legally binding way (i.e. in your will), you greatly reduce the chance of family conflicts or court battles. If the worst happens, the court will generally honor the parents’ written nomination of a guardian, which means your kids will be cared for by the people you trusted and selected. Without this in place, relatives could end up fighting over guardianship, and a judge would decide based on the “best interests of the child” standard. Naming guardians through your will is the best way to avoid uncertainty and ensure stability for your children during an otherwise chaotic time.

(For more details on the guardianship process, see our dedicated article on Guardianship in Virginia.)

Using Trusts to Secure Your Children’s Financial Future

Beyond naming a guardian, young parents should consider setting up trusts or other financial arrangements to protect any assets left to their children. By default, if a minor child in Virginia inherits money outright, a court may need to appoint a guardian of the estate (a financial guardian for the child’s property) to manage those funds until the child becomes an adult. At the age of 18, the child would gain full control of the money… whether or not they are ready for that responsibility. For many families, this isn’t ideal.

Trusts provide a better solution in many cases. With a trust, you can appoint a trustee (a trusted adult or a professional trust company) to manage the assets for your child’s benefit, and you can set rules on how and when the money is used. For example, you could direct that funds be used for education, living expenses, or medical care, and that the remainder isn’t fully distributed to the child until they reach 25 or 30 (or whatever age you choose). This way, you protect your children’s inheritance from being squandered or poorly managed during their younger years.

There are different ways to set up a trust for your kids. One common approach for young families is a testamentary trust, which is a trust written into your will that only comes into effect if you (and your spouse) pass away while the children are still minors. The will can specify that any assets going to a minor child should be held in trust and outline the terms. Another approach is a revocable living trust, which you set up now to hold your assets during your lifetime and which continues for the children’s benefit after your death. A living trust has the added benefit of avoiding probate (the court process of validating a will and distributing assets). In a state like Virginia, avoiding probate can save time and court costs, ensuring your kids have prompt access to funds for their needs. (Learn more on our Revocable Living Trusts page.) An estate planning attorney can help you decide which trust strategy makes sense based on your family’s circumstances.

Life Insurance and Custodial Accounts (UTMA) for Your Kids

Life insurance is also a critical piece of young family estate planning. Many young parents carry life insurance to provide for their family if an income earner dies. It’s important to coordinate your life insurance with your estate plan. Typically, you’ll want to name your spouse as the primary beneficiary and then either name a trust as the secondary beneficiary or use Virginia’s Uniform Transfers to Minors Act (UTMA) to appoint a custodian for the funds until your child is of age. Naming minor children directly as beneficiaries can lead to complications, since insurance companies generally won’t pay large sums to minors without a court-appointed guardian of the estate in place. By directing the proceeds into a trust or UTMA custodial account, you ensure the money will be managed properly for your children.

What is a UTMA account? UTMA allows you to name a custodian to hold and manage assets for a minor child. The custodian manages the funds for the child’s benefit and can spend them on the child’s needs (education, support, etc.) until the child reaches a specified age. In Virginia, the default age of termination for a UTMA account is 18 (the age of majority). However, Virginia law lets you extend the custodianship to a later age if you wish: you can specify that the child will receive the funds at 21 by adding “(21)” in the UTMA designation, or even at 25 by adding “(25)”—this is allowed for transfers made on or after July 1, 2019. (In those cases, Virginia law defines “minor” as under 21 or 25, respectively, instead of 18.) Keep in mind that even if you set the age to 25, the child has the right to demand the funds at 21 if they formally request it in writing.

UTMA accounts are relatively simple and cost-effective for modest amounts of money, but they do give control to the child once the termination age hits. If you have significant life insurance proceeds or other assets for your children, a trust may offer more long-term control and protection (at the cost of more complexity). For example, a trust can stagger distributions beyond age 25 or include conditions (like graduating college) for distributions, which UTMA cannot do. An estate planning attorney can help determine whether a custodial account or a trust (or a combination) is best for your situation.

And don’t forget: keep your beneficiary designations updated after major life events (like the birth of a new child) so that they align with your current wishes. This simple step helps prevent disputes and ensures financial support goes where you intend. For instance, if you have another child, you may need to update your life insurance and retirement account beneficiary forms to include them, since those assets pass outside your will (the named beneficiary form controls who gets them).

Don’t Overlook Powers of Attorney and Healthcare Directives

Estate planning isn’t only about planning for death; it also addresses situations where you might be alive but unable to make decisions. Every young parent should have both a durable power of attorney and a healthcare directive (advance medical directive). These documents name someone you trust to step in for you if you become incapacitated due to an illness or accident.

A durable power of attorney (POA) lets you appoint an agent to handle financial and legal matters on your behalf. For instance, if you were unconscious or otherwise unable to manage your affairs, your agent could pay your bills, manage bank accounts, file insurance claims, or even handle transactions like selling a house—all according to the authority you grant in the document. In Virginia, a power of attorney can be drafted to take effect immediately or only upon your incapacitation. Either way, it remains in effect if you become incapacitated (hence it’s “durable”). Without a POA, your spouse or family might have to go to court to get appointed as your conservator to handle these tasks, which is a time-consuming and costly process. Having a power of attorney in place ensures seamless financial management for your family if something happens to you, avoiding any interruption in paying the mortgage, childcare costs, or other bills that keep your household running.

A healthcare proxy (medical power of attorney) and living will are equally important. In your healthcare directive, you designate someone (an agent) to make medical decisions for you if you cannot communicate, and you can state your wishes regarding life support, resuscitation (DNR orders), end-of-life care, and other medical treatments. Young and healthy people sometimes assume these documents aren’t needed until old age, but unexpected medical crises can happen to anyone. If you’re in a serious accident or suffer a sudden illness, having an advance medical directive means your doctors and family know your wishes. It spares your loved ones from agonizing guesswork or conflicts over treatment decisions.

Virginia’s Health Care Decisions Act (found in Va. Code § 54.1-2981 et seq.) provides the legal framework for advance directives, allowing you to outline instructions and appoint a healthcare agent in a document that hospitals must honor. In fact, Va. Code § 54.1-2983 explicitly allows any adult capable of making an informed decision to make a written advance medical directive at any time. The directive must be signed in the presence of two adult witnesses and can include both your treatment preferences and the appointment of an agent to decide for you. By taking advantage of this, you stay in control of your healthcare choices and ease the burden on your family during emergencies.

(For more on medical directives and powers of attorney, you can read our in-depth guides or consult with an attorney.)

Keep Your Plan Updated as Your Family Grows

Creating an estate plan is not a “one-and-done” task; it’s an ongoing process. Regularly updating your estate plan is essential to ensure it continues to meet your family’s needs and reflect current law. Major life changes like the birth of a new child, a marriage or divorce, or a significant change in your finances should trigger a review of your plan. For example, if you have another baby, you’ll want to add that child as a beneficiary in your will or trust (if your documents generically refer to “children” or “descendants,” they may already cover future kids, but it’s good to double-check). If you move to or from Virginia, you should have your documents reviewed to ensure they comply with the requirements of your new state. (Virginia’s laws on wills, trusts, and powers of attorney can differ from other states, so a quick update can save your family from complications down the road.)

Here are some major events that should prompt an estate plan update:

Change in family composition: The birth or adoption of a child, marriage, divorce, or remarriage.
Significant financial changes: A new home purchase, starting a business, receiving a large inheritance, or other major increases/decreases in assets.
Relocation: Moving to a new state (or country) with different estate and probate laws.
Changes in law: Updates to federal or state laws (e.g., tax law changes) that could affect your estate plan.
Change in intentions or relationships: If someone you named as a guardian, trustee, or agent can no longer serve or is no longer the right choice, or if your relationship with beneficiaries has changed.

It’s also wise to periodically review who you’ve named as guardians, trustees, and agents. People’s circumstances change; the guardian you picked for your toddler might no longer be the best choice when your kids are teenagers, or maybe your originally chosen trustee has moved away or developed health issues. By keeping these appointments current, you ensure the right people are in place to care for your children and manage affairs if needed. Likewise, keep an eye on your life insurance and retirement account beneficiaries; update those forms if, for example, you have another child or if someone you named is no longer in the picture. (As noted, these assets pass outside of your will, so the beneficiary form controls who gets them.)

Finally, be aware of legal and tax changes. Tax laws and estate laws occasionally change at the federal or state level. For instance, while Virginia currently has no state estate tax, federal estate tax exemptions adjust over time and are set to change soon. As of 2025, the federal estate tax exclusion is $13.99 million per individual (meaning most families won’t owe federal estate tax) and the annual gift tax exclusion is $19,000 per recipient. Under the One Big Beautiful Bill Act (OBBBA, signed July 2025), the federal estate-tax basic exclusion was permanently raised to $15 million per individual starting in 2026 (indexed for inflation thereafter), eliminating the prior sunset. It’s wise to stay in touch with your estate planning attorney for news on any law updates that might affect your plan. Many attorneys offer periodic reviews or newsletters to keep clients informed. By reviewing your plan every few years—even when no major life event has occurred—you can have peace of mind that it still accomplishes your goals and complies with any new legal requirements.

Estate Planning FAQs for Young Families

Below are answers to some common questions that millennial and Gen Z parents in Virginia often have about estate planning.

What happens if I die without a will in Virginia and have minor children?

If you pass away without a will (i.e., you die intestate), Virginia law will determine who raises your children and how your assets are distributed. A judge will appoint a guardian for your kids based on the “best interests of the child,” which could be a relative you might not have chosen yourself. For your assets, Virginia’s intestacy laws (Va. Code § 64.2-200) lay out a strict order of inheritance. For example, if you’re married with children from that marriage, your spouse would inherit everything; but if you have children from a previous relationship, your spouse would receive one-third and the children would share two-thirds. If no surviving spouse, the children inherit everything. In short, dying without a will means the court decides your children’s guardian and who gets your property, which may not align with what you would have wanted. This is why having a will is absolutely critical for parents.

How do I choose a guardian for my children?

Choosing a guardian is a personal and often difficult decision. Start by listing people who love your children and would raise them in a stable, caring environment. Commonly, parents choose a close family member or friend who shares their values. Consider practical factors too: the person’s age and health (will they have the energy to keep up with a child?), their location (would your kids have to move far away?), their relationship with your kids, and whether they have the financial stability and support system to take in your children. It’s wise to name one person or couple as primary guardian and at least one alternate in case your first choice can’t serve. Before finalizing your choice, talk with the potential guardians to make sure they’re willing and able to serve. Remember, you can also separate the roles if appropriate—for example, one person could be the guardian of the person (day-to-day caregiver) and another could be the guardian of the estate managing the child’s inheritance, if that makes sense in your situation. Ultimately, choose people you trust deeply. You can always update your will later if your chosen guardian’s circumstances change or you change your mind.

What is a UTMA custodial account, and will my child get all the money at 18?

A UTMA custodial account is a simple way to leave money or assets to a minor without setting up a formal trust. Under the Uniform Transfers to Minors Act (UTMA), you name a custodian (an adult or financial institution) to manage the assets for the child’s benefit until they reach a certain age. In Virginia, the default age when the child takes control is 18 (legal adulthood). However, Virginia law allows you to specify a later age—you can choose 21 or 25—by adding a clause in the transfer document (for example, writing “as custodian for [Child’s Name] under UTMA (21)” for age 21, or “(25)” for age 25). If you do this, the child will receive control at the specified age. (Note: if you extend to 25, the child also has a one-time option at 21 to demand the assets early.)

In any case, once the child reaches the termination age (18, 21, or 25 as set), the custodianship ends and the child gets full access to whatever is left in the account. There are no further restrictions at that point. This is a key difference from a trust. With a trust, you could spread out distributions or hold assets until much later in life; with UTMA, the latest you can delay transfer is age 25. For many smaller gifts or life insurance policies, a UTMA account is convenient and cost-effective. But if you are leaving a significant inheritance or have concerns about a young adult handling a large sum, you may want to use a trust for more control. In summary, UTMA is a useful tool for managing a child’s money while they’re young, but yes, they will inherit outright at the age you specify (18 by default, or 21/25 if extended). Make sure you’re comfortable with your child receiving the funds at that age, or consider a trust as an alternative.

Does Virginia have an estate or inheritance tax that I should worry about?

No, Virginia does not currently impose a state estate tax or inheritance tax. The Commonwealth eliminated its estate tax in 2007, and it does not tax inheritances either. This means that, regardless of the size of your estate, Virginia won’t take a cut upon your death. However, federal estate tax could still apply for very large estates. The good news is that the federal estate tax exemption is quite high: in 2025 it’s $13.99 million per individual (almost $28 million for a married couple). In other words, if your net worth is below those figures, your estate won’t owe any federal estate tax under current law. Under the One Big Beautiful Bill Act (signed July 2025), the exemption was permanently raised to $15 million per individual starting in 2026 (indexed for inflation), so the prior sunset no longer looms. Only the very largest estates need federal estate-tax planning. There is also a federal gift tax, but it only kicks in after you’ve given away more than the lifetime exemption (which is unified with the estate exemption, $13.99M in 2025). Plus, you can give up to $19,000 per year (in 2025) to any number of individuals without using any of your lifetime exemption, thanks to the annual gift tax exclusion. Bottom line: most young families won’t come anywhere near the federal estate tax limits. If you do have substantial wealth (congratulations!), you should work with an estate planning attorney to explore advanced strategies. For everyone else, the lack of a Virginia estate tax and the high federal exemption mean taxes are unlikely to be the biggest concern—focusing on guardianship, asset management, and incapacity planning will be more important.

I’m young and not rich – do I really need an estate plan now?

Yes, absolutely. Estate planning is not just about money; it’s about protecting your loved ones and making things easier for them if something happens to you. Even if you don’t have a large bank account or mansion to pass on, if you have minor children, naming guardians in a will is crucial. That alone is a reason every parent of young kids needs a basic estate plan. Also, think about life insurance or any savings/retirement accounts you have—those are assets that need proper beneficiary designations and possibly a trust or custodial arrangement to benefit your children. Young adults can and do face unexpected health crises, so having an advance healthcare directive and a durable power of attorney is important for everyone, not just the elderly. These documents ensure that if you’re incapacitated, someone you trust can make medical decisions and manage finances for you. In short, estate planning is about more than wealth: it’s about peace of mind. By setting up a few key documents now—a will (to cover guardians and asset distribution), possibly a trust or UTMA for your kids’ inheritance, a financial power of attorney, and a healthcare directive—you take a huge burden off your family. It’s an act of love that secures your children’s future no matter what. And remember, you can start with a simple plan and update it as your situation (and hopefully your net worth!) grows. The earlier you put these protections in place, the better off your family will be.

Start Securing Your Children’s Future Today

Estate planning for young families may feel like a big task, but with the right guidance it can be straightforward, affordable, and incredibly rewarding. By taking steps now to put a plan in place, you’re investing in your children’s security and your own peace of mind. The earlier you start, the more flexibility you have to adjust your plan over time—and the sooner you can relax knowing your family is protected.

At Prior Law, a millennial-owned firm, we pride ourselves on being a trusted early resource for millennial and Gen Z parents navigating estate planning. We understand the unique concerns of young families—from appointing guardians for little ones to balancing student loans with saving for the future. Our Virginia estate planning attorneys will walk you through each step in plain English, ensuring your plan is comprehensive yet tailored to your needs.

We also offer modern conveniences, including virtual consultations and even a mobile office that can come to you. Our goal is to make the process as easy as possible for busy parents. Contact us today to schedule a free consultation (we’re available by phone or text) and start securing your children’s future with a solid estate plan. We’re here to help you protect what matters most.