Additions to the family and estate plan changes

On Behalf of | Sep 5, 2023 | Estate planning |

Estate planning can encompass many different matters related to finances and healthcare. To avoid probate problems in California courtrooms, an estate planner might carefully look over their assets and decide what to leave their beneficiaries. Estate plans could be subject to change, as life’s circumstances are not always static. For example, the arrival of an unexpected child might prompt significant revisions to a current estate plan.

A new member of the family

When an estate planner writes a will, the Probate Court reviews and follows its stipulations. Unless someone contests the will, expect the wishes presented in the document to be followed by the executor and the probate court. If a new addition to the family is not mentioned in the will, the child might not receive anything from the estate. This situation could be devastating for a young person if they are not financially supported, as it could lead to an uncertain future.

Revisiting the will and updating estate plans might be advisable with the arrival of a new family member. The will could direct funds to a trust for the young person to care for their future educational needs, among other things. Also, the will could suggest guardianship if the child is underage. Sometimes, the will could withhold funds until the child reaches a certain age.

Other estate planning matters

There could be other estate planning issues to consider. For example, setting up an irrevocable trust could be preferable when dealing with minors. Putting a life insurance policy inside a trust is another possibility.

When there are major changes in someone’s life, it could be advisable to revisit an estate plan. Reviewing the plan annually, even without major changes, could be beneficial.