Making Sure Your Grandchildren Receive An Inheritance
If you are in the process of constructing a plan for the distribution of your assets after your death, you may be concerned about making sure your grandchildren receive their fair share of an inheritance. While leaving money to your children is most likely desirable, there are a few steps you will want to do to ensure the younger generation is also included in the distribution of your assets. Here are a few steps you can use in preparing your children in adhering to your wishes that your grandchildren are cared for monetarily when you are no longer around.
Speak With Your Children First
It is best to alert your children of your desires in including your grandchildren in your financial distribution plans. This will take away the surprise when they do not receive as much money or physical assets after your death as they had intended. If one or more of your children is not yet married, consider speaking to them about signing a prenuptial agreement should they decide to wed in the future. This will protect any assets you leave to your children and grandchildren from becoming part of a nasty divorce proceeding, possibly taking money away from grandchildren as a result.
Set Up A Trust Fund
One of the best ways to keep on top of your financial information is with the assistance of trust management services. They will know the ins and outs of handing monetary contributions in a way where they are distributed exactly as you wish after your death. A trust minimizes taxes as well as allows those inheriting money to avoid probate.
Many put stipulations on the age in which the grandchild will be awarded the money in the trust. This will help protect assets from being spent frivolously should one or more of the grandchildren not be of age to know how to budget their money properly. This type of fund also helps protect money from creditors and spouses of your grandchildren as there is a stipulation within the trust allowing the money to remain in the trust fund instead of being put into circulation.
Hire An Estate Planning Attorney
An attorney will help in the planning of your asset distribution so those who seek an entitlement after your death are made to go through the proper channels in receiving money, if any. An attorney will help you draft a will with your monetary intentions and keep copies of any financial trust information on file to be included with the will-reading session if desired. You will need to select someone to handle your estate after your death, which will include making sure your grandchildren's trust accounts are maintained and checked for accuracy. This person will also be in charge of any taxes due, and may even receive a sum for their involvement in the care taking of these accounts. This would be deducted from the trust fund.