Foster Children in an Estate Plan: What You Need to Know
When you open your heart and home to a foster child, you take on one of the most important roles in society — providing love, stability, and care to a child who needs it most. But what happens when it comes to estate planning? Unlike biological or legally adopted children, foster children don’t automatically inherit from you under state intestacy laws. That means if you want to include them in your estate, you must do so intentionally. This article explores how to ensure your foster child is protected in your estate plan — and how small steps today can make a lifetime of difference.
Understanding Foster Children’s Legal Status
In most states, foster children are not considered “legal heirs” of their foster parents.
That means:
If you pass away without a will, your foster child will not inherit anything under state law.
Even if you treated them as your own, the court cannot assume you meant to include them unless you put it in writing.
To include a foster child, you must make a specific provision in your estate plan — through a will, trust, or beneficiary designation.
1️⃣ Include Foster Children in Your Will
Your will should clearly identify your foster child by name and describe what you want them to receive.
Example:
“I give $50,000 to my foster daughter, Maya Smith, as a gesture of my love and appreciation for her place in my life.”
You can also leave them personal items — such as family heirlooms, jewelry, or keepsakes — to reflect the emotional bond you share.
Tip: Be specific. Ambiguous language like “my children” won’t cover a foster child unless they’re legally adopted.
2️⃣ Consider a Trust for Ongoing Support
If your foster child is still a minor or young adult, a trust may be the best way to ensure stability.
With a revocable living trust or testamentary trust, you can:
Leave funds for education, housing, or basic needs.
Appoint a trustee to manage money responsibly.
Control when and how distributions are made (for example, at age 25 or upon graduation).
This can provide meaningful support without risking mismanagement or loss of benefits.
3️⃣ Use Life Insurance or Retirement Accounts
If you don’t want to alter your main estate plan, you can name your foster child as a beneficiary of a life insurance policy or retirement account.
This bypasses probate and ensures they receive the gift directly — quickly and privately.
You can even create a small irrevocable life insurance trust (ILIT) if you want to manage how and when those proceeds are distributed.
4️⃣ Consider Adoption — If Possible
If you’ve fostered a child long-term and plan to care for them permanently, adoption creates legal inheritance rights.
Adopted children are treated the same as biological children under inheritance law — meaning they inherit by default if you die without a will.
Of course, adoption is a deeply personal decision and may not always be possible due to legal, family, or emotional reasons. But if it aligns with your family’s circumstances, it simplifies future inheritance planning.
5️⃣ Communicate Your Intentions
Estate planning isn’t just about documents — it’s about clarity and compassion.
Make sure to:
Tell your executor or trustee about your wishes.
Inform family members to avoid misunderstandings or disputes.
Keep copies of your documents in a safe, accessible place.
Foster relationships are often built on deep emotional bonds, but extended family members may not always understand those ties. Transparent communication helps prevent legal challenges later.
6️⃣ Plan for Guardianship if You’re a Foster Parent
If you pass away while your foster child is still under your care, the child’s custody will revert to the state or child welfare agency.
You can’t automatically name a guardian unless you have legal custody, but you can still express your wishes in your estate plan.
Name a preferred guardian in your will.
Write a letter of intent explaining your bond and your hopes for the child’s care.
Share this with your caseworker or attorney.
While not legally binding, courts often consider your wishes when determining placement — especially if the child’s welfare is at stake.
7️⃣ Don’t Forget Public Benefits
Many foster children qualify for public benefits, scholarships, or assistance programs.
If you plan to leave them assets, talk to an estate planning or special needs attorney to avoid unintentionally disqualifying them from eligibility.
A Special Needs Trust (SNT) may be appropriate if the child receives or may later receive government aid.
The Bottom Line
Foster parents build families in the most selfless way possible — through love, care, and compassion. But without legal planning, a foster child could be left out of your legacy entirely.
Creating a will, trust, or beneficiary designation ensures your intentions are honored and your foster child remains protected.
Estate planning is not just about dividing assets — it’s about reflecting the relationships that truly define your life.