Valencia, CA Estate Planning Attorney
In Valencia, California, having an estate plan is crucial, especially for those with minor children:
- Protection for Minor Children:
- Guardianship Designation: An estate plan allows you to designate who will care for your minor children (under 18) if something happens to you and the other parent. Without a designated guardian in your will, the court will decide who will care for your children, which might not align with your wishes. Remember there are no perfect choices. However, having properly nominated guardians for your children is generally better than leaving things to chance.
- Financial Management: By using a living trust, you can specify how your children's inheritance should be managed and distributed. Minors cannot directly inherit assets, so a trust ensures that their financial needs are met according to your instructions until they reach a specified age or milestone. You can make sure they get assets at a certain age or ages. You can also create Lifetime Protection Trusts (aka Dynasty Trusts) which may offer even more protections. In some trusts, there are also built-in protections from divorce, lawsuits, and creditors.
- Potential Issues Without an Estate Plan:
- Court Decisions: Without a will, the court will distribute your assets according to California intestacy laws, which might not align with your wishes, especially concerning minor children.
- Uncertain Guardianship: Without a designated guardian, family members might disagree about who should care for your children, potentially leading to disputes and uncertainty.
- Protections in Living Trusts for Minor Children:
- Trust Provisions: A living trust can include specific provisions for minor children, such as appointing a trustee to manage assets on their behalf until they reach a certain age or maturity level.
- Education and Support: You can specify funds (discretionary or otherwise) for education, health care, and other support needs of your children, ensuring their well-being.
- Protecting Beneficiaries with Challenges:
- Spendthrift Provisions: A living trust can include provisions that restrict the beneficiary’s access to the trust funds, protecting them from making impulsive decisions or being taken advantage of. Some may have gambling additions, substance abuse problems (drugs, alcohol, etc). Some may need protections from an unpredictable spouse.
