fbpx

Leaving a Loving Legacy

Baby-orangutanFew people get excited about doing estate planning, even though they might recognize the importance of leaving a legacy for their children and grandchildren. If you want to be smart about making gifts to your loved ones, though, there are some things you should consider before just writing a check. To reveal some of the secrets of leaving a bequest to your grandchildren, three Motley Fool contributors talked about what they've learned about estate planning tips and traps for the unwary. As you plan your own wishes, be sure to keep their thoughts in mind.

A recent article from The Motley Fool, titled “Thinking of Gifting an Inheritance to Your Grandchildren? Keep These 3 Things in Mind,” asks some of their experts for estate planning tips. Here are some of their answers:

Set up a Trust. Who wants to see the grandkids squandering their inheritance on something foolish? Many of the younger ones don’t have the appropriate financial skills to properly manage money. This makes the thought of handing over a large sum of cash or stock a queasy idea. A 2012 study showed that 23% of millennials spend more than they earn, so you have a reason to not feel well about your heirs and your money.

The article suggests that you instead set up a trust, a wise move if you're planning to pass along a substantial amount of money and want to avoid any chance of probate. You can control how and when a certain amount of money can be distributed to your grandchildren. That way they won’t be overwhelmed. This also gives your kin time to mature and develop their financial know-how. That way they can handle the inheritance when they receive the money later on.

Know about Estate Taxes. If you’re planning to leave an inheritance to your grandkids, the article says that you should remember the estate tax. This tax will be applicable if your total estate is valued at more than $5.43 million (for 2015). If this applies to you, you could start giving the grandkids money while you're still alive. The IRS allows a $14,000 tax-free gift each year per person, and that works for both you and your spouse ($28,000). Speak with an estate planning attorney to review your estate planning and estate tax situation. Some planning will go a long way toward helping you know that you money will be given to your heirs when they are ready and will anticipate any tax issues.

You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.  Why not call us for a complimentary consultation at 757-259-0707.  

Reference: The Motley Fool (April 22, 2015)“Thinking of Gifting an Inheritance to Your Grandchildren? Keep These 3 Things in Mind”

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment

LIKE THIS POST?

We have a LOT more where that came from!

We hate spam too. We will never share or sell your information.

Call Now ButtonCall Us Now https://jsfiddle.net/7h5246b8/

Request a free consultation

We hate spam too. We will never share or sell your information.

We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
  • We launched the rollout of our on-demand webinar early so that new clients and our allied professionals can view the important component parts of ‘an estate plan that works’ at their convenience.  That is available on our website.
  • Live video workshops will be produced as quickly as possible and certainly ahead of our previous schedule; we will keep you posted as these events become available. Given the ‘boutique’ nature of the firm, we rarely have more than ten people in our office including team members at any one time. During this period of ‘social distancing,’ we promise to have no more than 8 people at any time.   This allows us to comply with the Governor’s directive to limit in-person gatherings.
  • The best way to communicate with us is still by phone during regular office hours of 8:30 to 5:00, Monday through Friday, or, you can email any of our team members (that is, their first name followed by @zarembalaw.com).  We will respond to these emails as quickly as possible.
  • Please continue to follow the directives of our local, state, and federal agencies. For your health and in consideration of our team who is assisting you, if you’ve scheduled an office appointment or planned to drop off paperwork and are experiencing a fever, dry cough, or shortness of breath, please contact your primary care doctor for guidance and then our office to reschedule.

Thank you, Walt and the Zaremba Team

Coronavirus/Covid-19
Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.