How can I provide a bright future for my grandchildren?
Estate planning addresses many areas, and one of its most important functions is to create opportunities and security for the ones you love. There are a number of ways to take what you have and protect it so that your family’s younger generations will have the best opportunities available to them.
If you are ready to create a strong estate plan that makes the most of your resources with an eye toward providing the best you can to your grandchildren, you will want to consider using a grandchildren’s trust.
This unique financial planning product has features that make providing for your grandchildren more effective, and may allow you to avoid some forms of taxation leveed against wealth transfers that skip a generation.
What can the right trust do for me?
Trusts offer some fantastic opportunities for individuals who want to leave significant assets to their loved ones. Not only can you protect your estate from many forms of taxations and creditors, a good trust allows you to retain control over when your beneficiaries receive their share and how they use it.
When you create a trust and place your assets in it, you do technically lose ownership of the assets. You can, however, build the trust so that you are still able to dictate who gets which assets and when those assets become available. You may choose to distribute the assets not upon your death, but rather when the beneficiary reaches a certain age, or surpasses some other milestone, such as graduating high school.
You can also specify that the assets are not free to use for just any purpose – you can, for instance, require that all or some of the assets go toward education.
Why would I choose a grandchildren’s trust?
Grandchildren’s trusts allow you to leave assets to your grandchildren without facing heavy penalties under the Generation Skipping Tax. When properly created, a grandchildren’s trust, or generation-skipping trust, takes advantage of a number of legal exemptions to the Generation Skipping Tax, saving you money and leaving more for your grandchild.
As with any trust, the value is in the details. If you believe that a grandchildren’s trust may be the right option for your estate plan, be sure to consult with an experienced estate planning attorney. With proper guidance, you can create exactly the plan you need for your specific hopes and dreams, creating a bright future for the ones you love.
The best part, of course, is having peace of mind and getting back to spending time with the ones you love, knowing they have what they need.