Estate planning for new parents in California isn’t complicated. Some parents see the adjustment of their estate plans as necessary for their newborns. Children are certainly a reason to update your financial portfolio. Your children might even lose you prematurely, so consider the right support in place to promise your children a complete life.
Special needs trusts
One way to pass wealth onto children is to consider their special needs. Children with special needs can be legal beneficiaries of trusts and assets stated in a will. Using a special needs trust, however, ensures that any child with special needs has unique protection on their inheritances. Common trusts will also benefit your children and can prepare them for later life.
Medical directives
Your will either activates upon your death or when you’re incapacitated. Having your children named as caregivers can be done both legally and formally. Leaving your care left to a court’s discretion might cause you to recover with your estate in disarray. As long as you outline your wishes now, your children could be required to care for you when you no longer can.
Succession plans
A business that you want to hand down to your children needs a succession plan. This plan puts in place someone who takes your place when you leave it. This person is your successor. Thinking of your children at an early stage better prepares them. You can solve major decisions regarding the transfer of your business by considering your heirs.
Guardians and conservatorships
In the event that you leave early, estate planning can assign guardians to your kids. Being able to choose your own guardians means you can select people you trust. Otherwise, a judge will choose someone they see fit as the guardian. On the other hand, you might need a conservatorship. Conservatorships leave others in charge of an adult’s money.
Estate planning in California
Keeping your children in mind as you plan an estate could shelter your assets. Your assets are exposed to taxes or creditors when they’re transferred. When estates have beneficiaries, however, their assets remain sheltered until withdrawn.