Categories: 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 Law, LLC

Recent Posts

Who Has Legal Claim to a Property Based on Adverse Possession?

Whether you are the owner of a Chicago townhouse or a Champaign County farm, your…

10 hours ago

Are You on the Verge of Losing Your Licensing?

Losing a fishing license simply means not having the ability to legally enjoy a common…

1 week ago

Benefits of Setting up a Trust for Your Family

A family trust is any legal trust that you set up for the benefit of…

2 weeks ago

Need to Ensure Your Business is Safe? Call Us to manage Your Business Transactions

All the responsibilities and risks of starting or running a business, things like contracts for…

4 weeks ago

Things to Never Overlook When Creating Your Estate Plan

Even young people should consider how to handle their assets after a life changing event.…

1 month ago

Do You Know if Your Career Requires Licensing? We Do So Call Us!

Many careers require you to obtain a license. Accountants, auctioneers, and auction firms Attorneys Veterinarians…

2 months ago