How To Provide For Your Grandchildren Through Your Estate Plan
When you become a grandparent, this is an exciting and special time in your life. As a significant life event, the addition of grandchildren is a reason to take a look at your estate plan and see where you can make adjustments so that your grandchildren are included. There are several estate planning tools that can be utilized to help you ensure that your estate plan accounts for your grandchildren and takes care of them.
Estate planning can be complex, and everyone’s situation is unique. Putting together a customized plan that fully accounts for your specific circumstances is essential. To ensure your estate plan is up to date and accomplishes your personal objectives, consulting with an experienced estate planning attorney is advised.
For individuals interested in how they can include their grandchildren in their estate plans, The Villages, FL estate planning attorneys at Millhorn Elder Law Planning Group offer sound and experienced legal guidance.
Estate Planning Methods for Grandchildren
Grandchildren are special to grandparents and are often a prime concern. Updating an estate plan to provide resources for grandchildren is usually a priority. Below details the various means by which grandparents can financially support their grandchildren.
There are limitations on how much money a grandparent can give to their grandchildren before taxes are imposed. A single grandparent is allowed to provide a financial gift of up to $15,000, while a couple can double that at $30,000 on a yearly basis. Money over this amount will come with tax implications.
Medical and Educational Gifts
Paying money directly to a medical entity or an educational institution for grandchildren not only helps them, but can come with tax advantages.
529 plans are a popular way to fund a youngster’s future educational endeavors. Money put into a 529 plan can be used for educational costs such as tuition or room and board. Contributions to 529 plans can be advantageous for lowering estate taxes.
Family Incentive Trust
Loved ones who may not be financially responsible could benefit from an incentive trust that outlines conditions for receiving their inheritance.
A trust for children who are younger than 21 years of age. Before a grandchild is 21, a trustee will manage the property in the trust, and then when the grandchild reaches age 21 they will receive the property.
Dynasty trusts can be used to distribute wealth for generations, including your grandchildren, their grandchildren, and far beyond.
Money or Property In a Will
Grandparents can define a particular portion of their wealth or specific property in their will that will go to grandchildren. This option does not have safeguards against how the money or property will be managed by grandchildren, and it additionally does not come with any tax benefits.
An account can be made where grandparents can deposit money throughout their life, and then when the grandchildren become a certain age, they will have access to the funds.
Speak to an Estate Planning Attorney in Florida Today
As you can see, there are several ways that grandparents can plan and use their estate to provide for their grandchildren. Figuring out which tool is right for your circumstances and wishes is something that a Florida estate planning attorney at Millhorn Elder Law Planning Group can help you with. Call today at 800-743-9732 to schedule a free consultation.