When you adopt a child, you most likely need to make some major adjustments to your estate plan. Completing the adoption is a major life change that probably affects how you want your estate distributed and who you choose as your heirs.
Which Documents Need to Change?
Depending on the documents you originally signed when you made your estate plan, you may need to change:
- Your will
- Your trust
- Life insurance documents
- Retirement account beneficiary designations
- Your power of attorney
- Your advance health care directive
- Guardianship designation
- Business succession documents
Probably the most important document that many people need to change is the will. Sometimes, you can sign an addendum to the will, but more likely you will need a new will prepared, signed, and witnessed.
Why Do You Need to Change Your Will and Other Estate Planning Documents?
Your will currently does not include your adopted child as an heir. Since you probably want to leave part of your estate to your child, you need to change the document. The same is true of other estate planning documents. There is no guarantee that your child will receive anything from life insurance or a retirement account unless you specifically name the child in a beneficiary designation.
When you adopt a child after creating a will and forget to change the will, your child usually will still inherit part of your estate. He or she gets the portion of your estate that would have gone to him or her if you had not made a will at all. However, you may want to provide a different portion to your child or pass your estate on to your spouse first. In addition, you probably don’t want to take the chance that your child receives nothing.
Will Your Adopted Child Inherit Just Like Birth Children?
Yes, once you have officially adopted a child and received the court order granting the adoption, your child is treated just like birth children for purposes of inheritance laws.
Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience will give you confidence and peace of mind. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.
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