The One Task That Each New Grandparent Must Complete
The newest member of your family is warmly welcomed by Corona estate planning attorney Joseph Hudack. Being a new grandparent is one of the happiest times in life and alters everything, even how you handle your finances. The anticipation of a new baby, along with all the firsts it brings, can consume all of your attention and energy. However, one important task that every new grandparent must complete as soon as possible frequently goes unnoticed. The rapid creation (or revision) of an estate plan to incorporate your family’s newest generation is especially advised for grandparents.
Estate Planning Attorney for Grandchildren
Addressing the demands of your expanding family requires having a deliberate financial strategy for including your new grandchild’s future in your overall estate plan.
Your surviving family members may suffer unanticipated consequences if you don’t have an estate plan. This is due to the possibility that intestacy, or the laws of your state that apply in the absence of an estate plan and determine who inherits your assets, may not function as intended. Grandparents who had different goals or plans for their possessions may suffer as a result, which is devastating. Now is the time to take charge, while you still have time to put your intentions down on paper, rather than letting the government decide who receives your asset when you pass away.
When a grandchild is born, failing to update an estate plan might be just as dangerous as intestacy. Although you may have thought about having grandkids when you first made your estate plan, there’s a chance you didn’t include a mechanism to make sure your grandchild gets all you wanted. A grandchild can unintentionally lose their inheritance if a beneficiary designation is not reviewed or updated. The only method to completely secure your multigenerational family is with a comprehensive trust with coordinated asset ownership.
Grandparents Have Options
Planning for the future of your grandchildren can be done in a number of ways. Incorporating this younger generation into an inheritance strategy may require the use of several methods.
Giving the gift of education is one option. One method to prepare for your grandchild’s future success is to set away money for their education, as the cost of attending both private and public universities is rising every year. You may save money with a 529 plan that could increase tax-free until you need it. Even better, the 529 funds continue to be tax-free when used for eligible higher education costs.
Creating trust is another option to provide for your grandchildren. You can set aside a certain sum of money that can only be utilized for the benefit of your minor grandchild. The custodians of the account can be named as the child’s parents or even the grandparents. Until the minor child achieves the age of majority in his or her state of residence, or the age specified in the trust document, the designated adult has the authority to make financial choices on the minor child’s behalf.
Ask an Estate Planning Attorney for Assistance
To help ensure a successful future for your new grandchild, contact Hudack Law today at (877) 314-4309 Toll-free, please visit Hudack Law Estate Planning Attorney and areas of service a knowledgeable estate planning attorney to learn about the options you have available so you can provide for this child’s future.