If you come from a Vietnamese background, you likely have many traditions and ideals within your family that you hope to pass on to your children. You may talk to your parents about things they have taught you and the values that you hold, and you may picture yourself having similar conversations with your new child.
Having these ideas can be exciting as a new parent, and because you want to set your child on the right path, you likely also want to ensure that your child will have what he or she needs in the event of your passing. Though you may not want to think about your demise so soon after welcoming a child, creating an estate plan is vital for new California parents.
Why is estate planning so important?
Your estate plan can have many details that could impact your child's life. For instance, when you create your will, you can name a person to step in as the guardian of your child should that need arise. By naming someone yourself, you can ensure that the individual holds similar values to you and can help nurture those values in your child. If you do not name a guardian, the court could appoint someone who may not care for your child as you had envisioned.
You undoubtedly want to leave assets to your child after your passing. While state laws allow for such succession even without a will, you may want to remember that your child cannot take control of any inheritance he or she receives while a minor. As a result, the court would likely put someone in charge to manage the inheritance. Instead, you may want to create a trust to which you name the child as a beneficiary. You can name a trustee to manage the assets until the child reaches adulthood.
More decisions to make
Of course, your estate plan can go far beyond creating a will or a trust. You can purchase life insurance to provide financial support for your child, and you can ensure to include him or her in any desired beneficiary designations. You can also use your plan to address matters that could arise while you are still living, such as who will make health care decisions on your behalf if needed.
Wanting to pass on your family and cultural values to your child is respectable, and finding the right way to do so under all circumstances does not have to be difficult. Creating an estate plan could ensure that your values and traditions live on.