A Finger Lakes estate planning attorney can provide advice on making an estate plan for people in all different kinds of situations. Your family situation will have a major impact on the plans that you wish to make regarding what happens to your assets after you pass on. The Law Office of Michael Robinson, P.C. can explain how your family structure can impact the type of steps you need to take to facilitate the transfer of assets to your loved ones.
Making the right plans is vital so you can ensure that your heirs or beneficiaries will be able to inherit the maximum assets possible in a timely manner. If you are a grandparent and you want to provide an inheritance to your grandchildren, for example, you should reach out to a Finger Lakes estate planning attorney at The Law Office of Michael Robinson, P.C.
We can help you to understand the issues that can arise when grandparents provide an inheritance and can guide you through the process of making certain that the legal tools you use are the best way for you to provide for the grandchildren that you love.
Estate Planning Advice for Grandparents
If you are a grandparent who wants to leave money to a grandchild, there are a few key issues that you need to think about when you determine the best approach.
One issue is whether your estate is large enough to trigger estate tax or not. As of 2018, you’re allowed to pass on $11.18 million tax free but if your estate is valued at more than this amount then you will owe federal estate tax unless you leave assets to a spouse, since wealth transfers to surviving spouses are not subject to tax at all.
New York also has a state estate tax and the threshold for when you are taxed is lower at $5.25 million. If you end up owing taxes on your estate, you will significantly reduce the amount of money that you leave for your grandchildren. You should work with an experienced attorney on developing a plan to reduce or avoid estate tax while facilitating the transfer of as much of your wealth as possible to your grandchildren.
Another issue is whether your grandchildren will be able to inherit directly from you or not. If your grandkids are under the age of 18, they aren’t legally allowed to manage their own inheritance and so a guardian would potentially need to be appointed by the court if you simply left assets to a grandchild without any further instructions.
You should talk with an experienced attorney about whether you can facilitate the transfer of wealth through the Uniform Transfers to Minors Act or you can work with an experienced attorney to create a trust which will provide the maximum level of protection and control of trust assets. An experienced attorney can advise you on the best way to structure an inheritance so it is used responsibly to provide for the child while the child is young and so the money can be transferred in a quick, effective way to the young person who inherited once that young person becomes an adult.
Getting Help from a Finger Lakes Estate Planning Attorney
A Finger Lakes estate planning attorney assists grandparents in making the best estate plan for their situation so they can provide an appropriate inheritance to grandchildren or to other loved ones. We can also provide personalized assistance to people with all different family structures and in all different living situations. If you are young and many years away from becoming a grandparent, you still may need an estate plan to provide for the family and friends who rely on you, so don’t wait too long to make your plan in case something happens to you.
The Law Office of Michael Robinson, P.C. makes the estate planning process easy, no matter how old you are or who you wish to leave your assets to. In order to find out more about the legal services our compassionate and knowledgeable legal team can offer you, join us for a free seminar. You can also give us a call at (585) 374-5210 or contact us online to get personalized help with your estate plan.