The rule of thumb for estate planning is to update your plan every few years or when a significant milestone occurs. For some adults, that significant milestone may be the birth of a grandchild. Although you may be busy with all the fun and beautiful things that come with being a grandparent, it is vital to take a little time to update your estate plan to protect your assets and secure the future of your new addition to the family.
Why Update Your Estate Plan Following the Birth of a Grandchild
There are several reasons to update your estate plan following the birth of a precious grandchild. At OC Wills & Trust Attorneys, our estate planning legal team can explain why you may want to consider changing or updating your current plan.
- Secure your grandchild’s future – If you want to adjust your estate plan to reflect your wishes for leaving a portion of your estate to a grandchild or grandchildren, you must amend your current estate plan to include them. This will help reduce confusion and outline your wishes to specifically include the family members that matter to you.
- Avoid fights between family members — Children have no voice. Suppose you want your grandchildren to have a portion of your estate. In that case, you will need to spell that out explicitly so that other family members do not poach your assets for themselves or fight over what belongs to them and what should belong to the grandchild who cannot advocate for themselves.
- Specifying details — Some family members feel strongly about passing jewelry or family heirlooms down through the generations. If you have special mementos you want to pass to children and grandchildren, expressing your wishes with an updated estate plan is the best way to ensure you maintain control over your assets and that they pass to those you choose.
How Does Adding a New Family Member Affect an Estate Plan?
Adding a new family member can significantly impact your current estate plan. Now is an excellent time to consider your current plan and the changes you want to make to protect your entire family. Grandparents may want to reassess tax issues, trust options, education expenses, and beneficiary designations.
Updating beneficiary designations can be crucial if you want to leave specific heirlooms or assets to your grandchild. Often, grandparents don’t amend their estate plan, thinking that their children will pass along an inheritance or assets to the children. However, this doesn’t always occur. Designating specific beneficiaries or creating a trust with the grandchildren as beneficiaries ensures that your assets go to your grandchildren and cannot be accidentally or intentionally mishandled by other adults.
If you are interested in helping your grandchild with educational expenses, you may want to consider a 529 plan. This plan can only be used to pay for costs associated with educational opportunities and expenses. There are two types of 529 plans. One type can be used to pay for tuition, books, and other expenses associated with accredited universities and colleges. The second type of plan can be used to pre-pay tuition for trade, vocational, and college courses, as well as some specific K-12 expenses.
A California Estate Planning Attorney Can Help You Secure Your Grandchild’s Future
At OC Wills & Trust Attorneys, we want to help people craft a personalized estate plan that helps them maintain control over their assets. You worked hard to get where you are today. Protect yourself and plan for the future of the next generations by allowing an experienced attorney to help you create an estate plan that addresses your concerns and meets your goals.
Contact our office today and schedule a free consultation to discuss your estate planning options.