For a number of reasons, grandparents may find themselves acting as Guardians of their minor grandchildren. If this sounds like you, consider updating your California estate plan to ensure your grandchidren's well-being and financial stability.
Here are some common changes to consider:
- Update your Will or Trust:
- Add your grandchildren to your existing planning documents.
- Include provisions for managing assets left to your grandchildren until they reach adulthood.
- Include nomination of Guardian, to be effective at your passing.
- Include Trust provisions for Management and Distribution of Assets:
- Consider adding provisions to your existing trust, or creating a separate trust to hold and manage assets for your grandchildren's benefit. This can help ensure that their inheritance is managed and protected while they are under the age of adulthood, as well as distributed according to your wishes thereafter.
- Create a Special Needs Trust (if applicable):
- If your grandchildren have special needs, consider establishing a Special Needs Trust to provide for their care and support without affecting their eligibility for government benefits.
- Nominate a Guardian in a Stand-alone Document:
- In addition to a provision in your Will, consider preparing a separate document called a "Nomination of Guardian" (California Probate Code § 3413). This document allows you to nominate a guardian for your grandchildren in case of your incapacitation or passing.
- Update Your Own Power of Attorney:
- Be sure to designate an agent to make legal and financial decisions on behalf of your minor grandchildren, in case you become incapacitated. This is especially important if you're their primary caregiver.
- Create a Designation of Agent for Health Care Decisions for Minor Children:
- This document authorizes your named agent to make medical care and make health care decisions on behalf of your minor grandchildren, in the event that you are unavailable or unable act yourself.
- Carefully Review Beneficiary Designations:
- Ensure that your retirement accounts, life insurance policies, and other beneficiary-designated assets are updated to manage assets that you intend to give to your grandchildren. As there are different methods and practices, depending on the asset and owner’s intent, seek the advice of a qualified estate planning attorney and financial planner, as well as the financial institution holding a particular asset.
- Consult with a California Attorney:
- Consult with an experienced California estate planning attorney to ensure your estate plan is tailored to your specific situation and compliant with California law.
- Review and Update Regularly:
- Regularly review and update your estate plan to reflect changes in your circumstances, your grandchildren's needs, and any changes in California law.
As a responsible grandparent, make sure that your estate plan is designed to protect and provide for your grandchildren's well-being, both during your lifetime and after your passing.
Call (949) 505-9494 for a no-cost consultation with TrustCounsel Law,