Providing an inheritance for grandchildren is one of the best and most loving things that grandparents can do for their grandkids. You may want to leave money to pay for your grandchildren’s education or make plans to ensure that your grandchildren have financial security. Whatever the amount you can leave behind, and whether you leave money, property, or possessions, your grandchildren will appreciate the loving gift you have given to them.
If you are planning on leaving any type of inheritance for grandchildren, regardless of the size of the gift, you need to make informed choices about how best to structure the gifts you are providing to them. There are different ways that you can provide money or property to the next generation and an experienced estate planning lawyer can offer the help that you need.
Contact the Law Offices of James A. Miller, P.C. to find out more about the ways in which an attorney can assist you in making the best gift possible.
How to Leave an Inheritance for Grandchildren
When you wish to leave an inheritance for grandchildren, you have a few different options:
- You can make gifts during your lifetime. You are allowed to give away money and property without incurring gift taxes as long as you stay below excludable amounts. Giving your grandchildren gifts during your lifetime can be a good option because you can see how they enjoy the money. You can also provide unlimited funds for education during your lifetime without any gift taxes being incurred, as long as you pay the tuition directly rather than giving the money to your grandkids first.
- You can make gifts in a last will and testament. If you want to leave money or property to grandchildren, you can provide these instructions in your will. There are a few possible downsides to this approach. One issue is you cannot control what happens to the money after it is left to grandkids. Your grandkids will also have to wait to inherit until the probate process is complete. There is also another possible problem as well. If your will is contested and is found to be invalid, your wishes may not be respected and your grandkids may not inherit as you had planned.
- You can buy life insurance and name your grandchildren as beneficiaries. When you pass away, the death benefit will pay out to your grandkids. Unfortunately, buying life insurance becomes increasingly expensive as you get older.
- You can create trusts. Creating trusts may be the best way to leave an inheritance for grandchildren. When you create a trust, you can have much more control. For example, you could require the money in the trust be used to do things like pay for education or purchase a home. You could also require that the money be managed for your grandkids and doled out in smaller amounts rather than all at once, or that it be provided once your grandkids reach a certain age. If you make a trust, you can also make sure your grandchildren do not lose their inheritance to divorce, bankruptcy, or claims made against them by creditors if they get into debt trouble.
An experienced attorney can provide you with help in deciding what type of inheritance plan is best for you so you can take care of your grandkids the way you want to.
When Should You Make Your Inheritance Plan
You should make a plan to leave an inheritance for grandchildren as soon as possible and should keep it updated on a regular basis so you can be confident that your grandchildren will be provided for if something happens to you. Waiting too long could mean that it becomes too late for you to take the necessary estate planning steps to leave money to your loved ones.
Getting Help from a Worcester Inheritance Planning Lawyer
As soon as you decide to leave an inheritance for grandchildren, you should talk with an attorney about the best way to structure your gift. As your grandchildren grow and their needs change, you should also make sure to keep your plans up-to-date at all times.
The Law Offices of James A. Miller, P.C. can provide the help that you need to care for your grandchildren or to provide them with an inheritance that makes a difference in their lives. To find out more about the best way to provide an inheritance, give us a call at 508-799-8885 or contact us online to get advice that is personalized to your situation.