218 North 14th Ave, P.O. Box 317, Sturgeon Bay, WI 54235

920.743.9117

Door County WI Estate Planning Blog

Friday, February 14, 2014

Grandparents. Window of opportunity and do not overlook the simple stuff

Grandparents. Window of opportunity and do not overlook the simple stuff.

 

Simple gifts to family.

Family Loans at very low interest rates.

 

Gifting assets to your grandchildren isn't just a nice thing to do; it can reduce the size of your estate and the tax that will be due upon your death. 

Grandparents can give their grandchildren up to $14,000 a year (in 2014) without having to report the gifts. While you can make an outright gift, pay health care and school costs directly, or put the money in a custodial account, putting the money into a trust has some major advantages. 

With the help of an attorney, you can draft a trust that reflects your express wishes about when the income and principal will be available to the grandchild, and even how the funds will be spent. 

Transferring funds into such a trust offers the following benefits:

  • You can reduce the size of your estate by transferring up to $14,000 (in 2014) into each trust you create for each grandchild. No gift taxes will be due in connection with the transfers.
  • Although the trust owns the assets, you control them as trustee and can decide what type of investments to make.
  • Income earned by the trust from amounts that you've deposited will not be taxed to you; the trust pays the taxes.
  • Amounts deposited in trust, and the income earned from those funds, will be used for the benefit of your grandchildren. 
  • You can provide that the trust terminate at any age you specify.

In order to qualify for these benefits, certain restrictions apply. These trusts are complex legal documents and should not be set up without the help of an experienced elder law attorney.


Archived Posts

2015
2014
2013
2012
2011
2010



© 2019 Ross Estate Planning | Disclaimer
218 North 14th Ave, P.O. Box 317, Sturgeon Bay, WI 54235
| Phone: 920-743-9117 | 866-743-9117
2300 Riverside Drive, Green Bay, WI 54301
| Phone: 920-743-9117 | 866-743-9117

Overview of Services | Estate Planning | Long Term Care / Nursing Home Planning | Specialty Planning | Trust Administration / Probate | | Resources | About Our Firm

FacebookGoogle+

Attorney Website Design by
Amicus Creative


Client Login

LegalVault Acccount
 

Hospitals

Healthcare Providers