If you have grandchildren, some grandparents want to provide for them financially. These provisions are part of the grandparents' MA estate planning.
To improve on the grandparents' life experiences
Sometimes, they want to help the grandchildren live in a better financial way than the grandparents had.
For example, some grandparents put themselves through night school (just before and )after World War II. Holding day jobs, the night school was not easy. But the grandparents wanted to lift themselves from families of immigrant poverty and the wife's father dying at an early age due to work conditions.
Estate tax planning
Sometimes the grandparents want to give money to their family members to lower the grandparents' taxable estate. In states like Massachusetts that exempt $1 million owned at death, the lifetime gifts will lower the estate taxes due on their passing.
For some people, the first goal of improving their grandchildren's lives is based on the grandparents' lives. And sometimes this wish is joined with their wanting to lower their estate taxes.
Gifts can take several different forms
The form of gifting can be either immediate or delayed. If immediate, the gift can be a check or an object, say a vehicle.
If delayed, the gift can be in the form of a trust share or a 529 account. The 529 account has several tax advantages. These benefits include both lowering income tax and estate tax.
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If you have estate planning questions or concerns, or would like to get started creating your estate plan, contact the experienced Lexington, Massachusetts estate planning attorneys at MA Wills and Trusts at 781 863-8606 to schedule your consultation. Or contact us at Contact