7 Things to Think About Before Giving Gifts to Grandchildren

Author

Entrusted Legacy Law

For more information about the author, click to view their website: Sharek Law LLC

Posted on

Jun 26, 2023

Book/Edition

Pennsylvania - Greater Pittsburgh Area

If you have grandchildren — or are getting ready to welcome one — you know the special  joy they bring. After all, you can now leave all the heavy lifting to the parents and just enjoy connecting with them.

Many grandparents who enjoy financial freedom are often more than generous to grandchildren. And some even wish to see their grandchildren enjoy an inheritance now instead of waiting to pass along assets after they are gone. If that’s you, here are seven things you should think about before you make gifts to grandchildren.

Clarify The Gift
Most grandparents gift outright, no strings attached. But if you think you are providing a loan or an advance on an inheritance, you need to clarify that in writing.  

Equal Treatment
It is not unusual for a grandparent to be closer to some grandchildren than others, but when you are gifting assets, unequal treatment among grandchildren could lead to family resentments. Even if you give more to some than others during your life, consider treating all grandchildren equally in your estate plan.

Taxes
With the federal gift tax threshold at $12.92 million (double that for married couples), most people won’t have to worry about paying federal gift taxes. However, any gift to an individual that exceeds $17,000 each year ($34,000 for married couples) must be reported on a gift tax return.

Education
You can help with a grandchild’s college tuition by making payments directly to their educational institutions, which don’t have to be reported. And there is no limit on these contributions. Investing in a 529 plan for each of your grandchildren is also a great way to help them (and their parents!) save for college, building a tax-deferred account that will never be taxed as long as it is used for educational purposes.

Your Own Needs
It’s tempting to be too generous in making gifts to grandchildren, but you should not give to the detriment of your own needs. Finding the right balance will help ensure your children and grandchildren don’t have to support you because you gave too much to them.

Long-Term Care
Chances are that you will need some kind of long-term care at the end of your life, research shows that most of us will. If you can’t afford long-term care and need help, any gift of assets you have given could make you ineligible for Medicaid benefits for five years.

Consider A Trust
There are many reasons why you should not give gifts of cash or assets to grandchildren, some that you may not even be aware of. Lots of cash could be fuel on the fire of bad behavior or undermine your own children’s goals for their children. To make a lasting gift, consider using a trust that will pass assets along to grandchildren safely and protect those assets from bad behavior, bad marriages and bad credit.

If you have questions, contact Sharek Law Office at 412-347-1731 or click here to schedule a complimentary 15-Minute Call with our staff to learn how we can help

This article is a service of Sharek Law Office, LLC. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge. Please note this is educational content only and is not intended to act as legal advice. 

To view the original version of this article visit www.shareklaw.com/post/7-things-to-think-about-before-giving-gifts-to-grandchildren
Seniors Blue Book was not involved in the creation of this content.

Other Articles You May Like

Estate Plan Check-Ups

Estate Plan Check-UpsEffective estate planning is personal, and its more than just deciding who to leave your assets to once you die. Effective estate planning is a comprehensive process that encompasses pre-need planning: health care decisions, financial management, and maintaining a delicate balance between independence and security. Like your preventive doctor visits, you should regularly check in on your estate plan to ensure it fits your current needs, considers and plans for potential future care needs, and will give effect to your wishes now and in the future. Generally, estate planning involves creating a last will and testament, possibly a revocable trust, possibly an asset protection trust or a supplemental needs trust for a loved one who is unable to manage finances or may be vulnerable to abuse or exploitation. Estate planning also involves important advanced directives, such as a durable financial power of attorney, a health care power of attorney, and a living will. Creating an estate plan, or getting my affairs in order, tends to be an item on our to-do lists, for us to get done and move on to the next thing. However, while it may not be something you have to look at every month, or even every year, once your initial estate plan is completed, it is something that needs to be reviewed with some regularity.Most people get an annual physical when they are healthy, not when they are sick. They do this because they want to proactively spot any issues that could cause them to become ill in the future. The same concept can and should be applied when it comes to reviewing and updating your estate plan. Your estate plan may be healthy now, but you want to make sure that it stays that way by checking it regularly, to ensure it fits your needs and family circumstances, protects and provides for you now, and accomplishes your goals and wishes in the future. Editors Note: This article is for informational purposes only and is not intended to be legal advice. This article was submitted by Ashley Day, Esq. Ashley Day Law, LLC. Reach her at 251-277-3377.

Going Nuts for Pistachios

Let's celebrate one of nature's most delightful offerings: the pistachio. These little green gems are not just a treat for the taste buds; they're also packed with health benefits. Let's crack open the world of pistachios and other nuts, exploring their health benefits and some delicious pistachio-based snacks.The Wonder of PistachiosA Nutty HistoryPistachios have been a cherished snack for millennia. Originating from the Middle East, they have been a symbol of wellness and robust health since ancient times. Today, they are enjoyed worldwide, known for their unique flavor and vibrant green hue.Health Benefits of Pistachios1. Heart Health: Pistachios are great for your heart. They're loaded with antioxidants, healthy fats, and fiber, which help in reducing cholesterol levels and lowering the risk of heart disease.2. Weight Management: Despite being energy-dense, pistachios have a high protein content and fiber, which can help in feeling full and preventing overeating.3. Blood Sugar Control: Their low glycemic index makes pistachios a smart snack choice for maintaining stable blood sugar levels.4. Eye Health: Pistachios contain lutein and zeaxanthin, antioxidants that are crucial for eye health.We've put together a selection of pistachio-based snacks. From roasted and salted pistachios to pistachio-infused treats, there's something for every nut lover. These snacks are perfect for a healthy, satisfying nibble.Uncanny | Pistachio Salted | 1.3oz CanWonderful | No Shell Pistachios Roasted & Salted 0.75ozconsciouSnack Obleas Pistachio Amaranth Wafers (1.05oz)B'cuz | Granola Bites Cherry Pistachio Gluten-Free Snack (1oz)A Nut for Every NeedWhile pistachios are in the spotlight today, let's not forget about the wide variety of nuts available, each with its own set of health benefits. Almonds are great for vitamin E, walnuts are rich in omega-3 fatty acids, and cashews are packed with iron and magnesium. Incorporating a mix of nuts into your diet can provide a broad spectrum of nutrients and health benefits.Visit our website - we are more than snacks, we promote wellness. Perfect for vegans, diabetics, celiac, keto, and more...

Nurturing Harmony in Caregiving: Open Communication and Conflict Prevention

Caring for aging parents involves crucial decisions regarding who will provide the necessary care and in what setting. However, these decisions can often give rise to conflicts among family members, particularly when one sibling assumes the role of primary caregiver. Through our work with clients and families, we frequently encounter these stressful and emotionally charged situations, creating a perfect storm for family disputes and distress.Reflecting on recent consultations with families, it becomes apparent that a key factor contributing to conflicts is the failure of aging parents to openly express their wishes and expectations regarding potential scenarios. When parents do not communicate their desires early and consistently, adult children are left to speculate about their parents preferences, leading to differences of opinion and sibling conflicts. To prevent such difficulties, we urge you to initiate conversations with your adult children about what if scenarios and discuss your wishes and preferences openly. This proactive effort can serve as your conflict prevention plan, saving you and your loved ones from engaging in conflict resolution in the future.In situations where a family member becomes a paid caregiver, it is essential to establish a formal caregiver agreement. This agreement serves multiple purposes, including clarifying the financial aspects of the care being provided. By having a caregiver agreement in place, you can prevent misunderstandings and promote a harmonious caregiving environment within your family. It ensures that everyone is on the same page and understands the expectations and parameters involved.Above all, open and honest communication is the key to fostering understanding and preventing conflicts among family members. We strongly recommend engaging in conversations early and frequently to address concerns, preferences, and potential challenges that may arise in caregiving situations. By doing so, you can promote a supportive and respectful environment where everyones needs are acknowledged and considered.At Bellomo & Associates, we believe in nurturing harmony within families facing caregiving challenges. Our experienced team is dedicated to providing comprehensive estate planning and elder law services that cater to your unique circumstances. Start the conversation with your adult children today, discussing your wishes, expectations, and potential what if scenarios. Visit our website to learn more about how we can support you and register for our free educational workshop. Let us help you pave the way for peaceful resolutions and a smoother caregiving journey.

View Details

Entrusted Legacy Law

Elder Law 100 Pinewood Lane Suite #303, Warrendale, Pennsylvania, 15086

Our Firm Prepares You for Life What makes our firm different is that we were built with the needs of growing families in mind. We understand you are BUSY, you are growing, you are planning for a life of prosperity and you value ease, convenience and efficiency. You are raising children, and caring for elderly parents, while also working hard to build your own nest egg for a lifetime of support. You want to know youve made the best decisions for your family and that your plan will work when your loved ones need it most. You want to make sure your minor children would be raised by the people you choose, and never by anyone you wouldnt want, and that your teens and adult children are properly prepared to care for you and what you leave behind. You want to feel confident that youve made the right choices, and handled everything so that you arent leaving behind a mess, when something happens. That is our focus as well. Weve developed unique systems to give you the same access to a Personal Family Lawyer as was previously only available to the super-wealthy, so you can have the guidance you need to build and maintain a life of prosperity and wealth. And, to keep your family out of court and out of conflict, which is the greatest risk to the people you love and all you have created, even if youve already worked with a traditional lawyer or created documents online. Our Team Is Here for You We encourage communication with our clients. In fact, weve thrown out the time clocks so you never have to be afraid to call with a quick question. Everything we do is billed on a flat-fee basis, agreed to in advance, so there are never any surprises. We have a whole team to serve you. When you call our office to ask your quick question, you wont have to wait hours or days for a phone call back. Youll get your question answered, right away. And, if you need to schedule a more in-depth legal or strategic call with your Personal Family Lawyer, a call will be scheduled when you're both available and ready for the call so we can make the very best use of your time and not waste your time by leaving voicemail after voicemail back and forth. And, we ensure the most important details of your planning are followed through on and your plan continues to work throughout your lifetime. We have a funding coordinator to ensure your assets are owned the right way throughout your lifetime and none of your assets will end up going through a long, expensive court process or being lost to the state because they were missed after your death. Weve created unique membership programs to keep your plan up to date year in and year out as well as give you access to our Trusted Team of Legal Experts for guidance on ANY legal or financial matter. One day you will need a lawyer. I dont know why and I dont know when, but when you do, you will be grateful you can call on us and well be here to advise you or get you out of a jam. We Help You Transfer Your Life and Legacy Lastly, we believe your financial wealth is only a small part of your overall Life and Legacy Planning which is made up of your far more valuable and most often lost upon incapacity or death intellectual, spiritual and human assets. These assets are what make you who you are, and sum up whats most important to you. And, a survey of inheritors has revealed that what they care about even more than inheriting your money, is inheriting these intangible assets. Most estate plans only focus on the transfer of your financial wealth to the next generation. Most people have such great intentions of passing on the intangible, but very few ever get around to it. Its just not a priority, until its too late. How much do you know about your grandparents values? Their most prized personal possessions? How they felt about you? What they had learned during their lifetime? If you are like most people, you know very little. Thats why we build the capture and passage of these most valuable assets into every estate plan we create. Not only will we help you pass on your money, but also your values, your insights, your stories and your experience the truly valuable assets your loved ones care about the most. Weve developed a tool that allows us to capture and pass on your whole family wealth, including your Intellectual, Spiritual and Human assets. I cant go into all of the details here, but well definitely talk about it when you come in for your Life and Legacy Planning Session.