As you are making important decisions about which assets you wish to gift to which beneficiaries in California, you may weigh your options of how to go about the process of allowing your beneficiaries to inherit their gifts. While your final decision is one that is personal and will require you to carefully consider your family dynamic and your own desires, being aware of a common misstep is important to prevent you from being disappointed in the outcome of your decision.
There are a couple of different things you can do with the assets you plan on gifting. You may choose to maintain ownership of certain assets until your beneficiaries reach a certain age, you become incapacitated or you pass away and an estate planning executor distributes what you had wished to gift. Another option is that you begin gifting assets and inheritance money while you are still living. While both of these decisions have advantages you should be thoughtful in selecting an option that you are comfortable with.
According to Forbes, if you choose to gift your assets outright with no strings attached and the recipients are not great at saving their money, you may see the money you gifted as an inheritance carelessly squandered away before you even have a chance to think about it. A better option is to secure assets inside of a trust fund that is strategically managed by a professional who can guide your beneficiaries through their decisions to assume management of the funds once you relinquish your ownership. This way, you can help to determine when and how any distributions will be paid to your beneficiaries.
The information in this article is intended for educational purposes only and should not be taken as legal advice.