Can an Estate Plan Include the Gifting of Assets to Grandchildren?

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Often, people planning their estates assume that they are more limited regarding who can be a beneficiary than they actually are. However, an estate plan can in fact include the gifting of assets to grandchildren. While the addition of grandchildren to an estate plan does complicate matters, with the help of an estate planning attorney, you can rest assured knowing that your grandchildren will be taken care of.

There are several factors that can come into play depending on your situation, including, but not limited to, the type of asset you are gifting, the purpose the asset would be used for (education expenses, primary residence, etc.), and whether or not your grandchildren are minors. For example, one important factor to consider is the GST tax, or the generation skipping transfer tax. Your grandchildren may be affected by this tax in addition to the typical estate tax. While this tax can considerably reduce the overall value of the gifted asset, with the help of experienced estate planning attorneys, the GST tax can often be avoided by means of a generation skipping trust.

It is not impossible to plan an estate without the help of a lawyer, but one wrong word can significantly change the intent of the will. More importantly, laws regarding estate planning significantly vary across state lines and everything estate planning is determined by state law. The specificity required of a will by state courts lends itself to serious mishaps for persons who choose to proceed without a lawyer. Thus, it is incredibly important to hire an experienced lawyer. Chicago IL estate planning attorneys at Anthony J. Madonia & Associates have ample knowledge of the intricacies of property law, no matter where you or your beneficiary resides.

If you’re looking for Chicago IL estate planning attorneys who will guarantee that your family is taken care of when you’re no longer there, Anthony J. Madonia & Associates has your back.