Welcoming a grandchild into the world is a significant life event that should trigger a review of your estate plan. For instance, you may have thought about selling your Louisiana home after retirement. However, now, you may want to consider keeping the home and passing it down to your child so that your grandchild always has a place to stay.
Review your will or trust
If you have a will or trust, you’ll likely want to update it to include your grandchild. At the moment, you’ll have to include a custodian to take any assets that your grandchild inherits as minors can’t own property by themselves. However, you can add a clause that says the custodian goes away if you die more than 18 years from now. You can also add your grandchild to a trust and stipulate that assets be distributed when he or she reaches the age of majority.
Review beneficiary designations
Beneficiary designations trump anything that is put into your will, which means that it’s important to look at them during your annual estate planning review. You can choose to add your grandchild as a beneficiary of a life insurance policy, IRA or other accounts that allow you to attach beneficiary designations to them. Alternatively, you can designate your child as a beneficiary with the expectation that a death benefit or other funds be used to help your grandchild.
Review how assets are titled
You can choose to alter the title to your home, car or other property to say that they should pass to your grandchildren upon your death. Of course, if you die in the near future, those assets would first go to your adult children before ultimately going to your grandkids when they are old enough to have them.
There are few joys like knowing that you’ll be a grandparent. Taking time to review your estate plan means that multiple generations of family members can benefit from your resources.