Drawing up a comprehensive estate plan in California could make things easier for surviving relatives. Naming children in a last will and testament allows the testator to transfer assets to them. The arrival of a new child could prompt changes to an estate plan.
Children and estate plan revisions
California intestate law would guide asset distributions when there’s no will, creating results the estate planner might not want. With a will, the probate court rules based on what appears in the document. Sometimes, a will may become outdated, so the estate planner may need to make updates. New additions to the family may necessitate an update.
If the new child’s name does not appear in the will, the child may not have a claim to any assets. Revising the will and listing the child’s name as a beneficiary could ensure he or she receives something from the estate.
Further matters related to a new child
An adult could pass away before the child reaches a responsible age of maturity. Estate planning may also cover issues regarding the child’s care. The will could recommend someone to serve as the legal guardian. The estate plan might dictate the direction of funds toward the child’s healthcare and education.
Under careful consideration, an estate planner might decide to forgo a will and set up a trust. A trust would allow the estate planner to manage asset decisions even after their passing. For example, instead of giving the child everything on their 18th birthday, a 20-year incremental distribution could be instituted. There are other rules the trust may entail, and the directives might be less stringent for mature beneficiaries.