You may have specific goals for what happens to your estate after you pass, and that may include leaving money to your grandchildren. This is an objective for many Massachusetts grandparents, and through thoughtful estate planning, you can accomplish this goal. You can leave an inheritance to your grandkids through many different strategies, and it is in your interests to know all of the options available to you.
The right way to leave an inheritance to your grandkids depends on different factors, including potential tax penalties and more. A careful look at your estate and your goals for the future can help you understand the specific options available to you. Caring for your loved ones even after you pass is possible with the right estate plans in place, giving you confidence for the future.
The best way to leave money
The simplest way to leave money to a loved one is to leave it directly to him or her through a will. In some cases, the easiest and simplest option is often the best option, but that is not always the case. Depending on how much money you plan to leave, there could be steep estate tax penalties associated with this option. If you do not wish to leave money directly to someone through a will, the following are other ways you can accomplish this goal:
- Establish a trust for your grandchild, allowing him or her access to funds at a specific point in time, such as when reaching the age of 18.
- Set up an educational savings fund, allowing you to provide for his or her college education, even if this is years in the future.
- Name the grandchild as a direct beneficiary on your retirement, investment or bank accounts.
- Establish a custodial account, an option that allows you to leave your grandchildren securities, stocks and bonds.
Through careful estate planning, you can leave your grandchildren money that will allow you to help with their college education, future financial needs and more. The plans you make now can help you create a legacy for the generations that come after you, as well as provide you with peace of mind, knowing your interests are secure. If you are unsure of the best way to leave your grandkids an inheritance, you may want to start with an assessment of your case and explanation of your legal options.