Creating an estate plan doesn’t only have to include making difficult decisions.  When creating your plan, you’re able to make choices for the future.  This includes having the opportunity to have fun with some of your planning decisions.  Take a look at the information below, to see how you can have some fun with your estate plan.  If you have any additional questions, or if you’d like to begin creating your estate plan, contact an estate planning attorney.

• With your estate plan, you’re able to give to back to a favorite charity.  This can be a great way to benefit an organization that you’ve always loved.  Many people choose to give to an organization that has had an impact on their family or friends.  This may include gifting to Susan G. Komen for the Cure or the American Cancer Society.  If you choose to gift to charity, carefully consider an organization that is special to you.
• You may also choose to give to your loved ones in a special and meaningful way.  Many people choose to leave assets for their loved ones so that they’re able to achieve their goals.  You may decide to leave asset for a grandchild to attend college or for your daughter to fund her career ventures.  This can be a great way for you to make an impact on your loved one’s lives while also leaving a special memory along with your gift.

Creating your estate plan doesn’t have to be an upsetting process.  While you will be forced to make some difficult decisions, there are also many other things that you can do with your planning.  If you have any questions about fun and creative things you can do, consult with a qualified estate planning attorney.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

Many people don’t realize that minors can’t legally inherit property.  Naming a minor in your will or trust must be done with carefully crafted language.  If not, the court will intervene and take control of the gift.  As a result, much money and time are wasted.

It’s important to have a basic understanding of these 8 important, minor related, estate planning terms.  If you have questions or have a minor in your life, consult with a qualified estate planning attorney.

Minor

Any individual, age 17 or younger is a minor.  Even though they think they’re all grown up, they’re not.

Child’s trust

A trust created for a minor or young adult.

Custodian

No, it’s not the janitor.  A “custodian” is an adult named to manage property left to a minor under the UTMA or UGMA (i.e. Uniform Transfer to Minors Act and Uniform Gift to Minors Act.)

Descendent

Lineal offspring such as children and grandchildren are descendents.

Financial Guardian

The person either named in the will or appointed by the court to manage the minor’s property.

Guardian of the Person

The person either named in the will or appointed by the court to take care of and make decisions for a minor.  Such decisions include school, welfare, life-style, and medical decisions.  In other words, the guardians of the person are the people who raise the kids if the parents are disabled or deceased.

Pretermitted Heir

A child who is not named in or not provided for in a will.  Most states assume that if a child is not named, it is an error.  A pretermitted heir inherits his fair share.  If you wish to disinherit a child (or grandchild), you must explicitly do so.

Uniform Transfers (or Gifts) to Minors Act

The state law that regulates how assets can be transferred to a minor.

Do you have a minor that you care about in your life?  If so, be sure to consult with a qualified estate planning attorney when creating your estate plan.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

Often clients comment that they know why they had children when the grandchildren arrive.  When a grandchild is specifically named in your will or trust, the honor is great.  Typically, grandchildren are overlooked.

Because we know that you dearly love your grandchildren, we’re providing some tips on how to include your grandchildren in your estate planning.  This is part 2 of a 2 part article.

Special Opportunity Gifts

Some grandparents enjoying setting up a trust for their grandchildren that can be used for special opportunities such as a class trip to France, astronaut camp, music lessons, buying a first house, or college tuition.

Cash Gifts

Cash is always a popular gift.  If you would like to give significant cash assets consider doing so in protected trust provided in your own trust.

These protected trust ensure that the cash assets are fully available for your grandchildren as you instruct, but are not attachable by your grandchildren’s creditors.

Examples of creditors who won’t be able to get at your grandchildren’s trust assets include a divorcing spouse, bankruptcy court, or someone who is suing your grandchildren because of a car accident, slip and fall, or malpractice.

Gifts of Appreciated Assets

Because your grandchildren will receive a full step up in basis of your assets at your death, it may be wise to wait until then to transfer these assets.  If you want to give assets during your lifetime, give cash or assets that aren’t highly appreciated.

Getting a full step up in basis at your death means that your grandchildren will have reduced capital gains taxes.

If you have questions about how to include your grandchildren in your estate plan, consult with a qualified estate planning attorney and please be sure to check out part 1 of this 2 part article.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

Often clients comment that they know why they had children when the grandchildren arrive.  When a grandchild is specifically named in your will or trust, the honor is great.  Typically, grandchildren are overlooked.

Because we know that you dearly love your grandchildren, we’re providing some tips on how to include your grandchildren in your estate planning.  This is part 1 of a 2 part article.

Sentimental Gifts

Consider passing along a sentimental gift for each grandchild.  This might be a treasured book you shared, jewelry that has been passed down in your family, or a set of tools that you used together.

You can make provisions for sentimental gifts in your will or trust or pass such gifts along while you are still alive so can see your grandchildren enjoy them.

529 Plans

Consider setting up a 529 Plan or contributing to a plan already in existence.  The assets in 529 plans are used to pay for college expenses.  The assets grow tax deferred and are distributed tax free.

You can superfund 529 plans if you wish.  This means that you can contribute 5 years worth of your applicable credit amount at one time, without incurring gift tax or using any of your unified credit amount.

For example, the applicable credit amount is currently $13,000.  You can donate $13,000 x 5 or $65,000 at one time.  But then you’d have to wait another 5 years to make further applicable credit amount gifts.

Love Letters

Consider writing your thoughts about your grandchild down in a letter.  Some grandparents choose to make a video, scrapbook, or photo album for the grandchildren.

One grandfather made a notebook detailing his trip to Antarctica for each of his 6 grandchildren.  The adventure was an important part of him and took place before his grandchildren were born.  It helped the grandchildren understand him better and see what he was like when he was young.

If you have questions about how to include your grandchildren in your estate plan, consult with a qualified estate planning attorney and please be sure to check out part 2 of this 2 part article.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.