How to Leave Assets to Your Adult Children

Many older adults in Connecticut who are just beginning to think about estate planning want to ensure that they are able to leave important assets and possessions to their adult children. Often, elderly Connecticut residents who have never worked with an estate planning attorney on such matters assume that the only way to leave assets is by creating a will. While many, if not all, of a person’s assets may be the kind of property that can pass to an adult child or another relative according to the terms of a will, it is important to know that there are other ways to leave assets, as well. Depending on the type of asset, it may be more beneficial to consider another option like a beneficiary designation or payable-on-death (POD) designation in Connecticut, or a trust.

Creating a Will 

One of the most well-known methods for leaving assets to a family member is to create a will. Even if you are going to consider other methods that we discuss below for ensuring that certain assets go to a specific child or other loved one, it is important to have a will so that Connecticut intestate succession laws do not apply to your assets. In short, if you die without a will, all of your property that is not otherwise designated will be divided among surviving family members according to terms set by Connecticut law. But a will is not always the best way to leave certain assets. A will must go through a process known as probate, which can be long and complicated. Moreover, other parties may be able to contest the terms of the will, holding up the process further, and probate can be expensive. You may have other options.

Beneficiary Designation or Payable-On-Death Designation (POD) 

In Connecticut, it is possible to add what is known as a payable-on-death designation, or a POD designation, to an account such as a checking or savings account, as well as certificates of deposit. Other kinds of assets, such as life insurance, have beneficiary designations where you can name a beneficiary. When you designate a beneficiary, including through a POD designation, the person will only become the owner of the money or benefit upon your death. There is no need for probate. Instead, a beneficiary designation can claim the asset upon your death without added steps.

Trusts 

Different types of trusts may be beneficial for leaving assets to loved ones. A special needs trust (SNT) can benefit a disabled adult child, while other types of trusts can allow your adult children or other people who you want to inherit your assets to avoid probate.

Contact a Connecticut Estate Planning Lawyer 

If you have any questions about the best legal tools through which to leave assets to a loved one, including options for avoiding probate in Connecticut, it is important to seek legal advice. An experienced Connecticut estate planning attorney at the Law Office of Brian S. Karpe can speak with you today, and we can begin working with you to develop an estate plan that meets your specific needs. Contact us to learn more about the estate planning services we provide to Connecticut residents and to get started on a will, trust, or other estate planning document.

Sources:

cga.ct.gov/PS97/rpt/olr/htm/97-R-1083.htm

law.justia.com/codes/connecticut/title-45a/