Estate planning is a critical step for anyone who wants to ensure that their assets are distributed according to their wishes after they pass away. For California grandparents, estate planning is important, as they may have specific goals and concerns they need to address.
Create a will
A will is a legal document outlining how your assets will be distributed after you die. Grandparents need to create a will that reflects their wishes and ensures their grandchildren are provided for. In the will, you can designate who you want to be the guardian of your grandchildren if they are minors and who will receive your assets.
Consider a trust
In addition to a will, grandparents may want to consider creating a trust. A trust is useful in providing for your grandchildren’s education or other needs while ensuring that your assets are protected and distributed according to your wishes. Trusts can also provide tax benefits and protect assets from creditors.
Grandparents should make sure that their assets have designated beneficiaries. Your retirement accounts and life insurance policies require you to name beneficiaries. You should regularly review and update your beneficiaries.
Plan for long-term care
Grandparents should consider the possibility that they may need long-term care in the future. Planning for this can include purchasing long-term care insurance and setting up a trust or other financial vehicle to pay for the care.
Review and update your plan regularly
Estate planning is not a one-time event, and grandparents need to review and update their plans regularly. Life changes such as the birth of a new grandchild, the death of a beneficiary or a change in financial circumstances can all impact the estate plan.
Estate planning is a valuable step for grandparents who want to ensure that their assets are distributed according to their wishes and that their grandchildren are provided for. By taking a proactive approach to planning for their future, grandparents can ensure that their estate plan is comprehensive and effective.