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Grandfathered In: 5 Ways to Include Your Grandkids in Your Estate Plan

Father’s Day is almost here, and we are celebrating our fathers and grandfathers throughout June! You play an important role in your family and we want to recognize you. That’s why this month, we are offering a special promotion. The first five fathers to book a free, two-hour planning session in June will receive a $50 gift card to a local restaurant of their choice.

For many grandparents, we want to provide for our grandchildren financially when we are gone. There are several ways you can do this within your estate plan.

1. Set up a trust.

Trusts are particularly helpful when it comes to minor children. Since you set the terms of the trust, you have more control over the assets – even in death. You’ll decide when distributions can be made, withheld, etc. A trust also bypasses probate and isn’t public record.

2. Help Pay for College.

By opening a 529 plan, you basically establish a trust for your grandchild’s education. You’ll make a contribution into the account and the state will invest that money. The account won’t be taxed until the money is withdrawn, and the contributions are considered gifts – making them eligible for the annual gift tax exclusions.

3. Provide a gift.

You can gift your grandchildren up to $15,000 a year outright during your lifetime, taking advantage of an annual gift tax. The downside to doing this is you have much less control over how they spend that money.

4. Set them up for retirement.

A Roth IRA can be opened at any age. And even better, as a grandparent you can open a custodial Roth IRA. This allows you to remain in control of the account, until your grandchild comes of age. Just be mindful of the contribution limitations.

5. Share your legacy.

Gifting your grandkids in your estate plan is a unique way to share your financial values with them. But it’s also important to verbally share the important lessons you’ve learned and the values and passions that make you unique. That’s why all of our estate plans incorporate capturing your treasured intangible gifts: who you are and what’s important to you. It’s about providing them with more than money. It’s about leaving them with a piece of your heart.

Each of these options has pros and cons associated with it. We’d be happy to help you navigate which works best for you and your family. And don’t forget – in honor of Father’s Day, de Jesus Law Group is offering a special for dads and granddads. Book your free, two-hour planning session today to receive a $50 gift card to a local restaurant of your choice. Just use promo code “DAD” when booking to receive this deal.