How to account for grandchildren in an estate plan

| Mar 18, 2021 | Estate Planning

It’s not uncommon for Oregon parents to leave assets such as a car, a bank account, or a home to their children. However, assuming that you have a valid estate plan in place, it may be possible to transfer assets to your grandchildren. Let’s take a look at some ways to accomplish that goal.

How old are your grandchildren?

If your grandchildren have reached the age of majority, they can generally receive assets directly. This can generally be done by including them in your will. In the event that their inheritance is currently held in a trust, you can direct the trustee to transfer property to them as soon as you pass away.

What if your grandchildren are too young to own property?

If any of your grandchildren are minors, you will likely need to put items in a trust for them. Alternatively, you can appoint someone to serve as the custodian of any assets that they are going to receive.

Make sure estate plan documents are properly executed

A person who dies without a valid will is generally considered to have died intestate. Therefore, your assets will likely go to your spouse, children or siblings. If a trust is not properly funded, any items that it was supposed to hold will typically revert back to your estate. Unless an individual is specifically mentioned in your will, they may be legally entitled to nothing. An estate planning attorney may be able to answer any questions that you may have about passing assets to future generations.

An attorney may be able to help you create, revise or execute estate plan documents. Working with a lawyer may make it easier to ensure that these documents adhere to state law while also ensuring that your final wishes are respected. Finally, your legal counsel may be able to facilitate conversations with family members, and this may help to ensure that everyone understands what your plan is trying to achieve.