WILLS AND TRUSTS

How to Leave Your Kids and Grandkids Money for the Future

Bell & Shah Law, LLC understands the nuances of estate planning. Leaving your hard-earned assets to your loved ones does not have to be complicated. We can assist in protecting finances that can be subjected to taxation providing the maximum value for your children and grandchildren. There are some things to consider leaving assets to your children or grandchildren.

There is a generation skipping tax in addition to estate and gift taxes. A generation skipping trust can negate this tax. Paying for education can help some tax liability. There are a few account types to do this. A 529 plan, Uniform Gifts to Minors Act, and Uniform Transfers to Minors act. Our attorneys can help select the best plan for you and your family.

What are the circumstances?

You will have to analyze this to figure out where to start. What does your family need and does one person need more assistance than another? The recipient needs evaluated as well. How young is the person? Leaving a substantial amount to a young adult may have the opposite effect you intend. Consider a trust to set conditions for the assets to be released.

Talk with your children or grandchildren.

Adapt the plan to your, and your beneficiaries, circumstance. Inform them as to how the money should be used whether for housing, or education, or a vehicle for example. If they know you want them to use the funds productively and you are sure they will consider gifting money. You can gift up to $15,000 per year per person. This is the IRS take on gifting money.

Is there a retirement plan?

If the children or grandchildren are listed as beneficiaries, they receive required minimum distributions soon after your death and will be required to pay taxes on this money. IRAs do not have conditions for naming grandchildren as beneficiaries there are options.

Who distributes the assets?

Planning for our death is not pleasant. When we have finances or property that need to be distributed it is important to cover all the bases and ensure the least amount of stress to our loved ones. An unfortunate truth is these things can cause problems among your surviving relatives. Bell & Shah Law, LLC help you create a plan with a focus on your grandchildren or children so they can focus on healthy coping.

Bell & Shah

Recent Posts

Your Responsibilities as a Trustee of an Estate

A trustee is a person who acts as a custodian for all the assets contained…

6 days ago

What Is a Legal Description of Property Document?

Curious what a legal description of property document is? It’s a very short document, usually only…

2 weeks ago

Why Parents Should Consider Creating an Estate Plan

When preparing to have a first child, the number of things you need to do…

3 weeks ago

Important Notes When Creating a Severance Package

On the topic of worker benefits, employers are understandably more interested in discussing the advantages…

4 weeks ago

How a Professional License Attorney Can Help Your Business

Have you ever run into challenges regarding your occupational license? If so, you should be…

1 month ago

Essential Items to Include in a Will

Wills are legal documents that outline what happens to all your possessions in the event…

1 month ago