If 2023 is the year you’ll sit down to complete your estate planning for your own purposes, for your spouse and for any other family members, such as your grandchildren, it’s important to select the right tools to help you to accomplish these goals.
Although documents, such as a power of attorney and a will have their place in your estate plan, it is also important to think about whether it makes sense to use a trust to give assets to your grandchildren. There are several major benefits of using a trust for estate planning purposes, including:
- You can control the assets as a trustee and determine what kind of investments to make to grow the principal of the trust.
- You can reduce the size of your estate by transferring certain amounts into each trust that you create for individual grandchildren.
- You can determine that the trust terminates at the age that you specify.
- Amounts deposited into the trust and any income that is generated from those funds is set aside for the benefit of your grandchildren.
- Income earned by the trust from amounts that you have put in do does not get taxed to you as the trust pays the taxes.
If you have further questions about the best ways to use a trust for planning for your grandchildren’s future, contact our office today to discuss these details further. We have helped many others in Pasadena to create customized estate plans that serve you now and well into the future.