How to Use Estate Planning to Provide for Parents
One of the main motivations for most adults to create a California estate plan is to ensure their minor children are taken care of in case they die unexpectedly. However, with more and more adults joining the "sandwich" generation - taking care of kids and aging parents - it also makes sense to consider including parents as estate beneficiaries as well.
If your parents are dependent - even somewhat - on you for financial and/or healthcare assistance, you may want to consider setting up a trust in case they outlive you. Then, when they die, the money in the trust can go to your children. You will need to appoint a trustee - a sibling or other close relative may be a good choice - and give them the authority through your trust to terminate it once your parents are gone and dispense the rest of the funds to your children.
You can also utilize estate planning tools to help your parents while you are still living, through trusts that leverage the federal gift and estate tax exemptions, through annual exclusion gifts or by paying for their medical expenses (which you will need to pay directly to the provider).
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.