Hartford estate planning attorneys help clients to create the best estate plan for their family situation. For example, when you are a grandparent, you likely want to ensure that your assets are used to benefit your grandchildren. However, depending upon the age of your grandchildren, your family situation and your goals for your grandkids’ inheritance, the process of providing an inheritance may not be as simple as just creating a last will and testament.
You should work closely with Nirenstein, Horowitz & Associates to find out about the different legal tools you can use to structure the financial gift you want to leave for your grandkids.
Our experienced legal team is here to help you understand the implications of transferring assets and to help you identify the best legal tools to transfer your wealth to the next generation. Give us a call to find out more about the ways in which our Hartford estate planning attorneys can help you.
Estate Planning Tips and Advice for Grandparents
As a grandparent, you may wish to leave money for your grandchildren— but you may not want to do so by just using a last will and testament. If you use a last will and testament, you could run the risk of someone challenging the will, such as one of your children if they are not happy you have left money to grandkids instead of to them. You can reduce the chances of this occurring by using other techniques to transfer assets outside of the probate process, such as the creation of a trust or the use of pay-on-death accounts.
If your grandchildren are minors at the time when they inherit, simply transferring money to them in a will is also not a good idea since they cannot inherit directly and the court could be forced to appoint a guardian to manage their inheritance until they reach the age of 18. Then, at age 18, they could be handed a large inheritance without any conditions or limitations, which may also be undesirable. If you want to avoid problems associated with transferring assets directly to minors, you can use appropriate legal tools such as a living trust or you could transfer the assets under the Uniform Transfers to Minors Act.
Transferring wealth directly to your grandchildren in a last will and testament could also trigger estate tax if you have a larger estate, as generally the only way you can pass assets tax free during the probate process when you have substantial wealth is to leave those assets to your spouse. There are techniques you can use to try to minimize estate tax but you will need to work with an experienced attorney to find out what tools are right for you and what your best options are for giving less of your wealth to the government and maximizing your grandchildren’s inheritance.
Your grandchildren may also have other unique needs that must be addressed. For example, if you have a disabled grandchild, you will want to ensure that any financial gifts you provide to your grandson or granddaughter with a disability do not cause a loss of access to means-tested benefits like Supplemental Security Income (SSI) or Medicaid. A special needs trust could allow you to provide for a grandchild with a disability. Alternatively, if you have a grandchild who is irresponsible with spending, you may want to create a spendthrift trust to protect the inheritance that you are providing.
Nirenstein, Horowitz & Associates will discuss all of the different options you have for addressing the unique needs of your grandchildren when you are making an estate plan because our compassionate and knowledgeable legal team knows that every family situation is different.
Getting Help from Hartford Estate Planning Attorneys
Hartford estate planning attorneys at Nirenstein, Horowitz & Associates have the experience necessary to help grandparents to provide an appropriate inheritance that takes the needs of heirs or beneficiaries into account. Our compassionate and knowledgeable legal team also assists people with all different kinds of family situations, whether you are a young parent, a newlywed, single and/or a senior.
To find out more about the many different estate planning services that we can offer to you, join us for a free seminar. You can also give us a call at 860-548-1000 or contact us online to get personalized one on one help with your estate plan. Give us a call today to get your plans in place.
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