If you are a grandparent, you are likely deeply invested in your grandchildren’s wellbeing. To that end, you may have questions about how you can best financially support them as they grow and their needs evolve. Whether you are interested in providing them with financial support during your lifetime or after you have passed away, it may benefit you to speak with a law firm about setting up trusts for your grandkids. These legal and financial tools have numerous benefits and may allow you the best possible avenue to assist your grandchildren in specific ways while ensuring that your support is used at specific times and/or for specific ends.
One of the many reasons why trusts serve as excellent financial tools is that they are advantageous from a tax-related standpoint. The tax benefits associated with individual trusts vary depending on the trust type, terms and amount. Trusts set up for grandchildren tend to lower taxes on grandparents’ estates, which can be an excellent incentive for older Americans interested in creating trusts. Please feel free to ask any questions you may have about the potential benefits tied to the kind(s) of trust you may be interested in setting up for your grandchildren at any time.
One of the other reasons why trusts are so attractive is that the individual seeking to set up a trust is generally empowered to set terms related to its execution. For example, if you are interested in providing your children with money specifically for their education, you can insist that the funds in the trust be utilized for that purpose. Properly constructed trusts carry the force of law, so their terms must be generally respected. You may also set conditions related to the timing of when funds are released, etc. This kind of flexible oversight may be especially helpful for grandparents whose financial intentions are highly specific.
It is important to be wary of any advertising related to trust creation. If you are not speaking with a licensed attorney or a certified financial professional, the promises being made on such advertisements may be less than legitimate. In general, it is important to avoid signing any legal documentation related to your financial situation unless you have consulted an attorney or certified financial professional first. Your noble intentions related to providing for your grandchildren must be treated with the utmost care and respect.
Estate Planning Guidance Is Available
If you have questions or concerns about setting up trusts for your grandchildren, please consider connecting with trust attorneys Dallas, TX offers today.
Thank you to our friends and contributors at Brandy Austin Law Firm, PLLC for their insight into estate planning and trusts.