It is no secret that grandparents generally have very special relationships with their grandchildren. When you are planning your estate you are invariably going to be interested in providing for your grandchildren, and there are a number ways of going about it.
One very simple way to get resources into the hands of your grandchildren in a tax-free manner would be to take advantage of the annual $13,000 per person gift tax exemption. You can give gifts totaling this much within any calendar year to any number of recipients tax-free.
By doing this you are transferring assets without any taxes being imposed, but you are also reducing the overall value of your estate. This can provide you with estate tax efficiency in the long-run.
If you are married both you and your spouse are entitled to this $13,000 exemption. As a result, you could give gifts totaling as much as $26,000 to any number of grandchildren each year (or to anyone else for that matter).
Another option would be to pick up the tab for college tuition. You can pay for the school tuition of others as a gift free of the gift tax.
If you do not want to give money to your grandchildren directly you could set up a trust for their benefit and give gifts in trust. Once again you could utilize this $13,000 annual exemption to do this. A trustee of your choosing will administer the trust and make distributions to the beneficiaries in accordance with your wishes as stated in the trust agreement.
These are just a few ideas for grandparents interested in passing along resources to their grandchildren. If you would like to get more details simply take a moment to arrange for a consultation with a good Hartford estate planning lawyer.
Mr. Horowitz was awarded his Juris Doctor degree with honors from the University of Connecticut School of Law. While attending law school, Mr. Horowitz received the American Jurisprudence Award in Legal Ethics and the Nathan Burkan Award.
After graduation from law school, Mr. Horowitz continued his legal education at New York University School of Law where he received a Post Doctorate Law Degree in Taxation. He has also recently received a national achievement award.
Mr. Horowitz is admitted to practice before all the state courts in the State of Connecticut and the United States District Court.
Mr. Horowitz was selected for Super Lawyers in 2021.
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