With the holiday season upon us, now is the time for an estate plan update. In this blog, we explain what to consider as you prepare to give gifts to loved ones this holiday season.
Grandparents’ Day & an Estate Plan Update
As grandparents, you likely love the opportunity to shower your grandchildren with gifts. In most cases, people give gifts on holidays and birthdays. These commonly consist of items that may have been at the top of your grandchild’s wish list. While experiencing the joy on your grandchild’s face when they open a new doll or new race car is immeasurable, it is not uncommon to want to leave more substantial and meaningful gifts to your grandchildren.
GrandParents’ Day Holiday Estate Plan Update
Christmas and birthday gifts can leave lasting impressions on your grandchildren, but you may want to provide them with a gift that can assist them in building a savings account, furthering their education, or purchasing their first home, to name just a few. We hope this information will assist you in analyzing the important details of making a gift that can often be overlooked.
When do you want to make a gift? Consider this in an Estate Plan Update
When considering making a financial gift to your grandchildren, the first crucial decision is when to give them this gift. Various factors may influence your choice of timing. If your grandchildren are slightly older and are exploring college options, you might consider gifting them funds to assist with their chosen educational path.
Similarly, if you have adult grandchildren preparing to buy a home, planning a wedding, or expecting their first child, you may wish to offer them a monetary gift sooner rather than later to support these significant life moments. Making a gift during your lifetime allows you to witness the impact it will have on the recipients, which can be incredibly rewarding and meaningful.
In your Estate Plan Update, Consider whether you can afford to gift
You have not already, consider meeting with a financial advisor to help you develop long-term plans that align with your financial goals and take into consideration the ever-changing costs of living. A responsible advisor will likely perform an analysis of your current financial situation, along with your goals for the future, and help you determine the best methods to prepare for your financial future. This may involve your advisor recommending that you not take certain risks or make any considerable gifts.
While your intentions to provide a significant gift to your grandchildren are admirable, it may not always be practical or feasible given your current and future financial situation. If you wish to create a plan that includes a gift for your grandchildren, consulting with an experienced estate planning attorney is recommended. Together, you can devise a well-crafted plan that ensures that the gift is made when you are no longer living, if funds are available. This way, you can better align your intentions with your financial circumstances, which ultimately safeguards your family’s future.
Impact of Gifts
Lastly, you should consider both the potential positive and negative aspects of gifting to your grandchildren. Gifting to a grandchild and the gift’s subsequent impact may depend largely on your goals in making the gift. As it is, giving your grandchildren monetary gifts can enable you to provide them with opportunities that may not have been available to you earlier in life. Gifting can allow your grandchildren to have new experiences, build a nest egg, and invest in their future. Ultimately, these gifts can result in a profound and lasting impact on your grandchildren’s future.
Carefully consider the potential unintended consequences of gifting. Luckily, most negative effects can be mitigated by working with an experienced estate planning attorney who can create a strategic plan to leave an inheritance while avoiding associated potential pitfalls.
About Skvarna Law Firm in Glendora and Upland, California
Let a skilled attorney assist with your estate plan. So, contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. Therefore, we provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
