It isn’t uncommon for grandparents to want to provide their grandchildren with the resources to live a comfortable life. However, there are a series of steps that you’ll likely need to take to ensure that you do so in a manner that conforms with Texas law. Otherwise, there is a chance that your children, siblings or other family members may try to challenge your estate plan in court.
Make small gifts over time
You are allowed to make annual gifts of up to $15,000 to an individual without dipping into your federal estate tax exemption. Therefore, it may be a good idea to provide a grandchild with their nheritance over time to avoid triggering a taxable event. It is important to note that minors are not allowed to manage assets on their own. Instead, an adult must be appointed to oversee the money until the beneficiary reaches the age of majority.
Put assets in a trust
As a general rule, it can be difficult for other family members to challenge the terms of a trust. Furthermore, assets titled in its name are generally shielded from creditor claims, being divided in a divorce settlement or from being seized by the government. Finally, it will be overseen by someone who you trust to ensure that your grandchild will receive the inheritance that you have set aside for that person.
Have regular estate planning conversations with family members
Having regular estate planning conversations with family members may help to ensure that your goals are met with little resistance. Over time, your family will learn to respect your wishes even if they don’t necessarily agree with them. An attorney may be able to organize these conversations on your behalf.
The birth of a grandchild is often a good reason to review your estate plan, and an attorney may be able to help you go over your will, trust or other plan documents. Legal counsel may also provide some insight into the various ways that you can provide for your grandchild before you die.