Can I Name My Grandchildren as a Group

Glenn called me, frantic. He’d updated his Will five years ago, naming “My Grandchildren” as beneficiaries of his investment account. He’d recently welcomed twins, and now, with his health failing, his family was scrambling. The brokerage firm wouldn’t accept “My Grandchildren” as a valid designation. It was too vague. Glenn faced a default distribution under state intestacy laws, meaning assets would likely pass to his estranged son, resulting in a loss of over $150,000 for the grandchildren he deeply cherished. This is a surprisingly common issue, and it highlights the critical need for precision when naming beneficiaries.

Why “My Grandchildren” Isn’t Specific Enough

Estate law requires certainty in beneficiary designations. “My Grandchildren” lacks that certainty. What happens if a grandchild predeceases you but has children of their own? Do those great-grandchildren inherit? What if you have future grandchildren born after the Will is executed? A court will struggle to interpret your intent, leading to costly litigation and delays. Broader designations are almost always rejected, and the Will’s provisions become subject to a lengthy probate process.

How to Properly Name Future Grandchildren as Beneficiaries

There are several methods to accurately include future grandchildren. The most common is to create a “class gift.” This involves specifically naming your existing grandchildren and using language like “and any future grandchildren born to my children.” This clearly defines the beneficiary group. Alternatively, you can establish a trust that explicitly outlines the criteria for beneficiaries. This allows for greater control and flexibility, particularly if you want to dictate how and when the funds are distributed.

The CPA Advantage: Avoiding Unintended Capital Gains Tax

As a CPA with over 35 years of experience in estate planning, I often encounter situations where poorly drafted beneficiary designations trigger unexpected capital gains taxes. For example, if your investment account holds assets with a low cost basis, a direct distribution to grandchildren could create a significant tax burden. However, with strategic trust planning, we can utilize the step-up in basis to minimize or eliminate those taxes. Furthermore, accurate valuation of the assets, something I specialize in, is crucial to determine the estate tax implications and ensure compliance with IRS regulations. A trust also allows for more sophisticated distribution schedules designed to protect the inheritance from creditors and potential mismanagement.

What Happens If I Don’t Update My Beneficiary Designations?

Assets without valid beneficiaries may trigger probate if the total value of personal property exceeds $208,850 (for deaths occurring on or after April 1, 2025); a Will alone does not bypass this limit. A clear, well-defined beneficiary designation avoids this costly and time-consuming process. Furthermore, relying on intestacy laws means losing control of where your assets go. Your estate may be distributed in a way that doesn’t align with your wishes, particularly if you have a complex family dynamic.

Digital Assets and Beneficiaries

Don’t forget about digital assets! Under California’s RUFADAA (Probate Code § 870), beneficiaries and executors are legally barred from accessing digital accounts, photos, and crypto-wallets unless the decedent explicitly granted authority in their Will, Trust, or via an ‘online tool’. A well-drafted estate plan should also include instructions for accessing and managing your digital footprint.

What standards do California judges use to determine a will’s true meaning?

In California, a last will and testament operates within a probate system that emphasizes intent, clarity, and procedural compliance. When properly drafted, a will does more than distribute property—it creates legally enforceable instructions that guide courts, fiduciaries, and beneficiaries through administration with fewer disputes and less uncertainty.

When a will is drafted with California probate review in mind, it becomes a stabilizing roadmap rather than a source of conflict. Clear intent, proper authority, and compliant execution protect both families and estates.

Official Resources for Probate, Legal Standards, and Tax Rules

• Probate / Beneficiaries:
  San Diego Superior Court – Probate Division:
  Provides essential Escondido-specific “Local Rules” (Division IV) and forms effective January 1, 2026, including Rule 4.4.5 for remote appearances, mandatory e-filing protocols for Escondido County, and the calendar for the Central Courthouse.
• Legal Standards:
  State Bar of California:
  The official regulatory agency for California’s 270,000+ attorneys; use this portal to verify a lawyer’s license status, check for a history of disciplinary actions, and access the 2026 guidelines for ethical attorney-client fee agreements.
• Tax / Estate Tax:
  IRS Estate Tax Guidelines:
  The authoritative federal resource for estate and gift tax filing; this page reflects the 2026 “OBBBA” permanent exemption of $15 million per individual, which replaced the scheduled 2026 “tax cliff” from previous legislation.
• Self-Help / Forms:
  California Courts – Wills, Estates, and Probate:
  The Judicial Council’s primary self-help center offering standardized forms for 2026, including the updated $208,850 “Small Estate Affidavit” and the $750,000 “Primary Residence” simplified transfer procedure (AB 2016).