As a grandparent, you may want to make sure that your grandchildren remain provided for when you’re gone. There are many things to consider during estate planning to ensure things go as you wish. If you’re considering estate planning as a grandparent, here’s what you need to keep in mind.
A 529 plan can be a way for you to save up money and put it towards your grandchildren’s education. It’s also a way for you to invest money without worrying about any tax implications.
If you’re considering 529 plans as a grandparent, it’s essential to know that people use them for more than just college. They use them for other educational opportunities like vocational schools and online courses.
A 2503-C Trust is a type of revocable living trust designed to help beneficiaries who are minors or under the age of 21. This trust allows you to manage property and assets for your grandchildren until they’re ready to take control themselves when they are of age.
This type of trust can come in handy if you want to lessen the tax burden that would otherwise fall on your grandchildren. It also reduces the time needed for probate court by allowing you to name beneficiaries before passing away.
POD (payable on death) account
You may also consider naming your grandchildren ‘POD’ beneficiaries while estate planning. A POD account is an easy way to plan for your grandchildren’s future by using what you already have, and it allows them to access the funds immediately after your passing without having to wait for probate court.
For grandparents considering POD accounts, it’s important to know that the funds are only available when you open a new account or transfer money from another bank account with this feature.
Estate planning as a grandparent can feel confusing and overwhelming, but it doesn’t have to be. As you’ve seen, there are specific estate planning considerations that you can make to make it easier for you to provide for your grandchildren and ensure that they’re taken care of before and after you pass away.