Those who have donated sperm in California may want to remember this when doing their estate planning, some experts say, to ensure that a child who is conceived after that person has already passed away does not then ask for part of the inheritance or money from a trust. This is something that they claim has not happened often, but it is theoretically possible. Also, people are turning to sperm banks more often now, so it could be more of a concern in the future.
There are laws on the books that could support this. For example, New York has already passed a law that indicated that someone who is born after being conceived with donated sperm could retain their rights to ask for an inheritance from a trust in the family's name. This could even be done for a child who is conceived posthumously.
Two cases like this have been dealt with in California, and a precedent has been set. This precedent is similar to the law in New York in that it shows that things like property could be given to children who are the result of frozen sperm.
One way that people can keep this from happening is by putting their wishes into their will. If these wishes are stated officially before death, the will can then be used when deciding who is and who is not entitled to family money or property.
The changes in technology have created new things that must be considered when looking at an inheritance and the way that assets will be distributed. It is crucial for people to consider these new developments when they are doing estate planning and writing out a will.
Source: Market Watch, "Your frozen sperm could inherit your estate" Matthew Heimer, May. 30, 2014