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What estate planning ideas may grandparents follow?

On Behalf of | Oct 7, 2021 | Estate Planning |

Grandparents might want to take steps to care for both their children and grandchildren. When involved in estate planning, grandparents might wish to consider naming grandchildren as beneficiaries. Listing the parents as beneficiaries and hoping they provide for the children relies somewhat on faith. Once assets transfer to parents or guardians, it becomes theirs. So, anything specifically intended for grandchildren might need to appear in the will.

Grandparents and estate planning

Estate planning with grandchildren in mind could bring forth some concerns. For one, the grandchildren might still be minors. Leaving substantial assets directly to a minor is not prudent or legal, so a grandparent could set up a trust. The rules associated with the trust could help reduce the mismanagement of the assets.

A trust could also apply to adult grandchildren, children, and other beneficiaries. However, when leaving assets to grown adults, many may prefer to leave those belongings to the designated beneficiaries in a will. Transfer on death accounts might be possible, and these designations may assist those looking to avoid probate.

Further estate planning concerns and options

Grandparents may wish to review other estate planning options. Opting to give a grandchild something through the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act could reduce their tax burdens.

Various other strategies may factor into a grandparent’s estate planning. Purchasing an appropriate amount of life insurance could provide funds that go towards a child’s education and care.

Thorough and thoughtful planning may cover numerous ways to provide for grandchildren of any age. Those wanting to either take the first steps or revise current plans might wish to do so without delay.