Having an intentional financial strategy for incorporating your new grandchild’s future in your overall estate planning for grandchildren is an essential part of addressing your growing family’s needs.
Not having an estate plan can have unintended results for your surviving family members. This is because intestacy — or your state’s applicable laws that determine who receives your assets upon your death if you have no estate plan — may not work the way you’d expect. As a result, it can have disastrous results for grandparents who had other intentions or plans for their assets. Instead of having the government decide who gets your asset when you die, now is the time to take control, while you can still put your wishes down on paper.
Failing to update an existing estate plan when a grandchild is born can be just as disastrous as intestacy. While you may have contemplated the birth of grandchildren in your initial estate plan, you may not have put a mechanism in place to ensure your grandchild receives the maximum benefit you intended. Likewise, failing to review or revise a beneficiary designation may inadvertently disinherit a grandchild. A comprehensive trust with coordinated asset ownership is the best way to protect your multi-generational family fully.