To many grandparents, their grandchildren are precious. You don’t want to miss a single moment of them growing up, but if you can’t be there, you also want to make sure that they have the best shot at life. For this, your estate can help take care of grandchildren if it is your time, but the issue is that there are special considerations that must be made for those that are still considered minors. So if you are estate planning with your grandchildren in mind, here is what to keep in mind.
Grandchildren Dependent on Their Grandparents
In case where grandparents are the ones who are taking care of minor grandchildren because their parents are deceased or otherwise not in the picture, these grandparents want to protect those children as if they were their own. This means that in their estate plan, they will want to name a guardian for their grandchildren in their will. They will also want to add in a HIPAA release that will allow the medical records for their grandchildren to be released to another in case of an emergency or if the grandparent is incapacitated.
Finally, it may be wise to invest in life insurance to make sure those minor grandchildren are taken care of in the event of an unexpected passing.
Inheriting to Minors
Unfortunately, minors cannot directly receive any assets as gifts or inheritance. However, this doesn’t mean you cannot leave them anything. Instead, your estate plan should appoint a guardian to manage those assets until the minor comes of age. These guardians are appointed by the court, but this option can be expensive.
As a more affordable alternative, if a child is inherited assets under $50,000, a Child Uniform Transfer to Minors Act account can be opened and managed by a trusted adult of your choosing. For assets above that, they can be placed in a 529 Plan, which can be used to provide for any educational needs.
If you are a grandparent worried about how your estate will be handled for your grandchildren after you pass on, contact us today to let us help you put plans into place to provide for them.