If you are in your “golden years” and are looking for ways to spread your wealth, you should consider the various tools that will allow you to financially protect and benefit your grandchildren. Carefully planning your gifts to your grandchildren is not only a generous act, but can also be a financially wise move in your estate planning and in growing your overall family wealth as well.
So, where do you start with your gifting? You must consider how much you are comfortable with giving. Currently, the Internal Revenue Service permits you to gift up to $14,000 per year, per beneficiary, tax-free. This amount can be doubled to $28,000 if you are married and both spouses make a gift. As you can see, you can gift a substantial amount free of the gift tax, but it is important to confirm that you can afford to do it without it having a negative financial impact on you.
What are the ways to wisely “gift” part of your wealth to your grandchildren? Of course, you could simply hand over a check to them, but that doesn’t provide you with any estate planning benefits nor does it incentivize or encourage your grandchildren to grow that wealth instead of just spend it. Here are several other options you should consider:
The above list is just a few examples of ways you can provide for your grandchildren’s financial future while also obtaining a tax benefit. Contact a Personal Family Lawyer®today to schedule a time for us to sit down and talk through a Family Wealth Planning Session, where we can identify the best strategies for you and your family.