How do I set up a will for my newborn and plan investments for her future as an expat in Germany?

• Write a will naming a guardian and, if relevant, an alternate; include a choice of law (often your nationality) using the EU Succession Regulation.
• Keep money simple: hold investments in your name earmarked for your child, or open a junior account/depot if you accept the admin. Use a low-cost ETF savings plan and maintain a cash buffer for near-term needs.
• Add term life insurance and review beneficiary designations across accounts.

• Guardianship: name a primary and backup guardian; confirm they agree.
• Choice of law: many expats opt for the law of their home nationality in the will; this can avoid clashes with German forced-heirship rules: get legal advice.
• Executor and trustees: pick someone to execute the will and, if you set up a trust in your home system, someone to manage funds until your child is older.
• Beneficiary designations: coordinate with your bank, broker, pensions, insurance: these sometimes pass outside the will, so update forms.
• Storage: keep the signed will safe; consider official deposit and tell guardians how to find it.

• Short-term costs (0–3 years): keep funds in Tagesgeld.
• Medium/long-term (5–18 years): a simple ETF savings plan (global equity plus a small bond sleeve). Increase the bond/cash share as spending gets closer (e.g., schooling at age 14+).
• Account choice:
  • In your name with a mental earmark: easiest admin, full parental control.
  • Junior depot in the child’s name: potential tax savings under the child’s allowances, but more paperwork and restricted access rules.
• Gifts from relatives: accept into your account or the child’s; keep gift letters and bank proofs, and be mindful of gift-tax thresholds over time.

1. Draft a will with guardian(s), executor, and choice of law; get it translated if useful for family.
2. Buy term life insurance sized to pay off debts and fund 10–15 years of family costs.
3. Set up a monthly ETF savings plan for the child’s future, and a cash buffer for near-term child expenses.
4. Update beneficiary forms on pensions/insurance.
5. Store documents in a shared “in case of emergency” folder accessible to the other parent/guardian.

• Testament: will.
• Vormund: guardian.
• Erbfolge: succession.
• Pflichtteil: reserved share (forced-heirship concept).
• Nachlass: estate.

• Relying on country-of-residence default rules without a choice of law.
• No backup guardian named.
• Investing in complex, illiquid products you can’t manage during moves.
• Forgetting to align beneficiary designations with the will.

You invest €250/month for 16 years into a global equity ETF and €50/month into short-term bonds. From age 14, you begin shifting €100/month to cash for known education costs. You hold a term life policy and keep your will and instructions in a shared digital vault.

1. Book a will-drafting session with a lawyer familiar with cross-border estates.
2. Size a term life policy and set beneficiaries.
3. Open either a parent-held earmarked account or a junior depot and automate savings.
4. Review every year and after big life changes (moves, new jobs, more children).

📌 Related: Expecting a child as an expat couple and Gifts from parents abroad.

⚠️ IMPORTANT LEGAL DISCLAIMER:

This content is for educational and informational purposes only and does not constitute financial, tax, legal, or investment advice. You should not rely on this information as a substitute for, nor does it replace, professional financial or tax advice. Always consult with qualified professionals (tax advisors, financial planners, lawyers) before making any financial decisions or taking any actions based on this information.

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Disclaimer: This is general information and may differ for individual cases. Learn more about financial planning with Financemate in a discovery call. Always use a qualified lawyer to draft your documents.