Updating Your Will After a Baby in Canada
A new baby is the most common reason Canadian adults finally write or update their will. The priorities are clear and the work is manageable. This article walks through the steps.
Priority 1 — Guardian designation
If both parents die, who raises the child? Without a will-named guardian, courts decide — typically family but with no certainty about which family member. Guardian designation in the will gives the court your preference, which is typically followed.
Name a primary guardian and at least one backup. See our guardian-selection article for criteria.
Priority 2 — Trust structure for child's inheritance
A child can't legally inherit substantial assets at age of majority (typically 18 in most provinces). For minor children's inheritance:
- Testamentary trust holds funds until age of access
- Trustee manages funds for child's care during minority
- Age-staged distribution (some at 18, more at 21 or 25) common
- Trustee can be guardian or separate person
See our testamentary trust article for trust mechanics.
Priority 3 — Life insurance
Parents of young children typically need substantial life insurance to ensure adequate funding for the child's care. Common guidance — 10x annual income, varying by circumstances (cost of raising child to age 18+, replacement of parent's income, etc.).
Term life insurance is typical for young families — lower cost, sufficient term to cover children to adulthood.
Priority 4 — Beneficiary designations
Update beneficiary designations to include the new child:
- RRSP/RRIF — typically spouse primary, contingent provision for children
- TFSA — typically spouse as successor holder
- Life insurance — spouse and children as designated beneficiaries
- Employer pension — survivor designation for spouse and dependents
For minor children, designations often name spouse as primary with trust for children as contingent.
Priority 5 — Powers of Attorney
While you're updating the estate plan:
- Power of Attorney for Property — who handles finances if you're incapacitated
- Power of Attorney for Personal Care — who makes medical decisions if you're incapacitated
Spouse is typical primary; consider backup (parent, sibling).
Priority 6 — Life Discovery Kit
If you have one (or starting one) — add the new child's details, the guardian's contact, the trustee's contact, life insurance policy details, child's medical history starting point.
Timing
For new parents — within 6-12 months of the baby's arrival ideally. Sooner if you previously had no will. The baby is here; the planning shouldn't wait.
What we focus on at It's Simple Will
The will questionnaire handles guardian designation, testamentary trust for minor children, and all the related estate planning for new parents. The Life Discovery Kit captures family-care information.
Related guides
Citations & sources
- [1]Canadian Bar Association — Wills, Estates and Trusts Section — Canadian Bar Association
Frequently asked questions
Do I need a will if I just had a baby?
Yes. The single most important reason to have a will as a new parent is to name a guardian for your child if both parents die. Without a will-named guardian, courts decide. With one, the court typically defers to your designation.
Who should be the guardian?
See our [how to choose a guardian article](/resources/wills/how-to-choose-a-guardian-canada/). Key criteria — values aligned with how you'd raise your child, willing, capable, likely to outlive you, geographically accessible. Always name a backup.
How should the inheritance be structured?
For minor children — typically through a testamentary trust until the child reaches age of access (often 18, 21, 25, or staged distribution). The trustee manages the funds for the child's care during minority. See our [testamentary trust article](/resources/wills/testamentary-trusts-canadian-wills/).
Do I need life insurance?
Strongly recommended for parents of young children. Term life insurance (typical for young families) provides substantial coverage at modest cost. Recommended coverage often 10x annual income, varying by circumstances. Without life insurance, child's care may not be adequately funded.
What about beneficiary designations?
Update to include the new child. RRSP, RRIF, TFSA, life insurance all need beneficiary updates. For minor children, designations often name spouse as primary with trust for children as contingent.
Should I include grandparents?
As guardians possibly. As beneficiaries — typically the will leaves to spouse and children directly; grandparents not in the primary structure. But contingent provisions sometimes include grandparents.