Part 3 of a 3-Part Series
Two weeks ago, we started a three-part series dealing with the sad occasion of recovering when your child dies. As estate planning attorneys, we focus on the matter of managing estates. Click to read parts one and two. First, in part one, we covered life insurance death benefits, and employee benefits. Then, in part two, we wrote about crowdfunding to raise funeral expenses and memorializing digital accounts. This week, as we conclude, we will discuss charitable organizations and other relevant estate planning updates.
Charitable Organizations and Memorial Funds when a Child Dies
Many families find considerable solace creating a charitable fund to benefit others. They use it to honor the memory of their deceased child. Such organizations fund scholarships and medical research stipends, address social and community needs and otherwise do good in the world. The money for establishing such a fund flows from many sources described above. For example, insurance proceeds, crowdfunding donations, and digital asset revenues fill the bill. If establishing such a fund makes sense in your circumstances, ask your attorney for help. Or, you could contact the planned giving department of an existing charitable institution. Although many legal and tax implications exist; with the right help, such a fund honors your loved one. Thus, their presence will be felt far and wide.
After a Child Dies: Estate Planning Updates
After your child dies, remember to update relevant estate planning documents. In many cases, your estate planning attorney will draft estate planning documents like wills and trusts in a way that does not require removing the child’s name after his or her death. Instead, attorneys draft estate planning documents to automatically address the scenario where one of your kids has predeceases you. This relieves you of the need to update the documents. In some cases, however, you may need to update the estate. For example, when the specific property is designated to pass to a particular child who later passes away.
Additionally, update your beneficiary designations if you named your child as a beneficiary. This applies to life insurance policies and retirement accounts, such as an IRA or 401k. In some cases, naming a deceased individual as the beneficiary of an insurance policy or retirement account adversely impacts legal and tax issues.
In Conclusion
Considering the financial and legal aspects which occur after a child dies emerges as the last thing anyone would ever want to do. Rest assured, we remain ready to help. Your estate planning attorney understands these types of tasks. We can serve as a valuable resource when you need a helping hand. Give us a call if you need help. We are here for you, in person or virtually, at this most difficult time in your life.
About Skvarna Law in Glendora and Upland, California
Skvarna Law Firm operates offices in Glendora and Upland, California. We provide legal services. We cover San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes several cities. Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
