Shoup Legal speaks with many clients who are interested in both preserving and passing on their wealth through estate planning. But aside from specific strategies or documents, the priority remains taking care of others after you pass away. One central theme that emerges in creating an estate plan is how to best show appreciation when transferring assets to your family, heirs, and beneficiaries.
You can show appreciation by giving a special gift or leaving something meaningful to someone who has been important in your life. For example, you might have a close friend who would enjoy receiving some unique collectible that you both valued. Or you could set up small education funds for your grandchildren, separate from what you leave to your spouse or children.
There are different groups of people who might inherit from you, and you’ll need to think about how to divide your estate between them. Here are some ideas to get you started:
Direct Heirs and Family Members
The first group, direct heirs and family members, is usually the most obvious and often gets the largest share of your estate. Spouses, children, and grandchildren are all natural beneficiaries. How much each person receives can depend on factors like their age and financial needs, but you have the freedom to decide exactly how your assets are divided.
Without an estate plan, California state statutes will determine both the heirs and allocation amounts, which is not ideal. To make sure your care and intentions are clear, it’s important to make sure your wishes are documented.
Siblings, Friends, and Distant Relatives
This next group of potential heirs, consisting of siblings, friends, and distant relatives, may not actually expect any type of gift or inheritance. Once you have provided for your direct heirs, you can think about specific bequests to others who have been an important part of your life.
If you don’t have children of your own, you might think about your nieces and nephews. Giving gifts to your brothers and sisters is another meaningful way to show your gratitude for their love and support.
Non-profit Organizations
Finally, this last group of potential heirs, non-profit organizations and charities, will often be considered, especially if you have had a connection or relationship with their mission. There are several different ways to accomplish this, even by setting up a trust that gives you current income, with the remainder to the charity. Many charities depend on donations, and giving a gift can be a great way to show your support for the important work they do.
Learn what you need to do next by attending one of our spring workshops.If you’re ready to learn more about starting the estate planning process, feel free to contact us for a consultation or join one of our workshops to get more details. To see our upcoming workshop schedule, visit www.estateplanningworkshop.org, or better yet, call (951) 414-3731 to schedule your consultation today.
