Avoid these 5 mistakes when adding your grandkids to your will
As people build wealth, they naturally want to pass financial stability to their offspring. And when it comes to grandchildren, the bond and associated desire to provide is compelling. Nevertheless, that strong bond can morph into a weakness if you fail to exercise caution when formulating your will. If you would like to include your grandkids in your will, avoid these five potential dangers:
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No age stipulation
Without gazing into a crystal ball, none of us knows how old we or our grandchildren will be when we die. If they are under the age of 18, or if they are otherwise financially immature when you pass on, they could receive a large inheritance before they know how to responsibly handle it. To eliminate this pitfall, create a long-term trust for grandkids that provides continuing management of assets regardless of their age when you pass away.
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Too much, too soon
Even if your grandkids are mature enough to manage their inheritance, if they haven’t learned to properly manage large sums of money, the monies you leave them could be squandered.
Avoid this pitfall by refusing to give an outright or lump-sum distribution. Many options are available, from staggered distributions to leaving the inheritance in a lifetime, “beneficiary-controlled” trust. An experienced estate planning attorney like Vic Skvarna of Skvarna Law can help you decide the best way to allocate and distribute assets.
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Failure to communicate
Although you might trust your grandchildren to handle their inheritance, unless you provide specific instructions relative to what you want them to do with the funds, (use them for higher education, buy a house, start a business, or something else), their decisions may suffer from lack of direction. Avoid this pitfall by making sure the trust clearly explains your intentions for the money.
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Ambiguous language
Money can bring out the best (and the worst) in people. If you leave ambiguity in your will or trust as to how much each grandchild gets, and in what capacity, the door could for greedy relatives could open and allow your plan to be contested. To minimize this risk, be crystal clear in every detail concerning your grandchildren’s inheritance. An experienced estate planning attorney such as Vic Skvarna of Skvarna Law can help you eliminate ambiguous language in your will or trust.
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Touching retirement
Misguided grandparents can make the mistake of inadvertently forfeiting some of their retirement money to the kids or grandkids, especially when a family member is going through a financial crisis. If this happens to you, getting the money back when you need might be difficult to impossible. Avoid this pitfall by resisting the temptation to jeopardize your future by trying to “fix things” for your grandchild. If you would like to help them now, consider giving them part of their inheritance in advance, or setting up a trust. But, guard against giving that could leave you high and dry.
Estate Planning Attorney in Glendora and Upland
If you’re planning to put your grandchildren in your will or trust, the estate planning attorneys at Skvarna Law are here to help with every detail you need to consider. Contact us to explore your options and protect your family. We can help assess your long-term plans and documents and make sure you are as secure as possible when faced with new challenges.
Keeping your estate planning binder secure and up to date will reduce confusion as well as the likelihood of disputes. Whatever your circumstances, rest assured that the professionals at Skvarna Law can help you to determine the best way to handle your trust. Skvarna Law Firm operates offices in Glendora and Upland, California and provides legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
