Becoming a grandparent can be a very exciting experience, especially when grandchildren live nearby. The grandparents get to enjoy many of the pleasures of watching children grow without all of the daily frustrations of parenthood.
They can develop very close bonds with their grandchildren and provide them with multiple kinds of support. From childcare when parents transition back to the workforce to personal guidance and holiday gifts, there are many positive ways for grandparents to influence the lives of their grandchildren. For many new grandparents, the growth of their family is a compelling reason to put together an estate plan or update an existing one.
Why do grandparents need to think about estate planning?
A new grandparent will probably want to have a lasting and positive impact on the newest member of their family. One of the ways to achieve that is by setting aside specific sources that can benefit a grandchild when they are older. Naming grandchildren as beneficiaries of an estate is a common move by those with more than one generation in their families.
A trust or will is an effective way to arrange for property to transfer to a grandchild in the future. Grandparents can put aside financial resources to help their grandchildren pay for college. They could also help purchase their first vehicle when they are old enough to get a driver’s license. The resources that someone has, their age at the time of a child’s birth and a host of other personal factors will influence the best bequests to plan for grandchildren.
Those who want to ensure that assets go directly to grandchildren without parents assuming control over them may want to create a trust, particularly if they intend to limit the inheritance of their children. In some scenarios, grandparents who engage in estate planning can potentially preserve more of their personal resources for their loved ones after they die.
Advance planning for healthcare costs and other financial challenges later in life can minimize how much of someone’s property ends up going to taxes or debts after their passing. Grandparents will frequently need help evaluating their wishes and putting together documents that will help them achieve their goals.
Recognizing when life events necessitate planning efforts may benefit those experiencing changes to their personal circumstances, including family growth. Seeking legal guidance is a good way to get started.