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children

How Do I Include Care for My Children in Estate Planning?

 

How Do I Include Care for My Children in Estate Planning?

To make certain that parents’ wishes are followed, they should create a will that designates a guardian and a conservator in case both parents die, counsels The Choteau (MT) Acantha article entitled “Plan for children’s future when making out a will.”

A guardianship provides for the care of the children, until they reach adulthood (usually age 18) and gives the guardian the authority and responsibility of a parent. A guardian makes decisions about a child’s well-being, education and health. A conservatorship is designed to manage and distribute funds and assets left to children, until they’re age 18. A single individual can be appointed to do both roles, or separate people can be designated as guardian and conservator.

Frequently, the toughest decisions parents have is agreeing who they want to have the responsibility of raising their children and managing their money. Usually they select a person with similar values, lifestyle and child rearing beliefs.

It can be important to talk about the issue with older children, because some states (like Montana) permit children ages 14 and older to ask a court to appoint a guardian, other than the person named in parents’ wills.

You should also name a backup guardian and conservator, in case their first choices aren’t up to the task and review your choices periodically.

In many states, the law stipulates that when children attain the age of 18, they are able to get the property that was in the care of a conservator, no matter what their capability to manage it. Another option is to leave the assets in a trust, rather than a conservatorship.

Parents can provide in their wills the property that they want to pass directly to the trust, which is also called a testamentary trust. These assets can include life insurance payments, funds from checking accounts, stocks, bonds, or other funds. Parents can create a trust agreement with an experienced estate planning attorney that provides their named trustee with the power to manage the trust assets and use the income for their children’s benefit.

The trust agreement goes into effect at the death of both parents. It says the way in which the parents want the money to be spent, who the trustee should be and when the trust ends. The trustee must follow the parents’ instructions for the children.

Reference: Choteau (MT) Acantha (May 13, 2020) “Plan for children’s future when making out a will”

Read more related articles at:

Estate Planning for Young Families: 5 Questions Parents Need to Answer

Your Children

Also, Read one of our previous Blogs at :

Should I Use a Trust to Protect My Children’s Inheritance?

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PPOA types

What are the Different Kinds of Powers of Attorney?

 

What are the Different Kinds of Powers of Attorney?

If I asked you what you thought is the most important document in your estate plan, you may say it’s your last will and testament or your trust. However, that’s not always the case. In many situations, the most important planning document may be a well-drafted power of attorney, says The Miami News-Record’s recent article entitled “Power of attorney options match different circumstances.”

When a person can’t make his or her own decisions because of health, injury, or other unfortunate circumstances, a power of attorney (POA) is essential. A POA is implemented to help their loved ones make important decisions on their behalf. It helps guide decision-making, enhances comfort and provides the best care for those who can’t ask for it themselves. A POA permits the named individual to manage their affairs.

To know which type of POA is appropriate for a given circumstance, you should know about each one and how they can offer help. There are five POA forms.

Durable and Non-Durable Power of Attorney. This is the most common. These leave a person with full control of another person’s decisions, if they’re unable to make them. A Durable POA continues to be in effect when you are incapacitated. That is what the “durable” part means. A Non-Durable POA is revoked, when you become incapacitated. Be sure you know which version you are signing.

Medical Power of Attorney. Especially in a hospice setting, it permits another person to make medical decisions on the patient’s behalf, if they lose the ability to communicate. This includes decisions about treatment. In this situation, the POA takes the role of patient advocate, typically with the presiding physician’s consent.

Springing Power of Attorney. This POA is frequently an alternative to an immediately effective POA, whether it durable or non-durable. Some people may not feel comfortable granting someone else POA, while they’re healthy. This POA takes effect only upon a specified event, condition, or date.

Limited Power of Attorney. This POA provides the agent with the authority to handle financial, investment and banking issues. It’s usually used for one-time transactions, when the principal is unable to complete them due to incapacitation, illness, or other commitments.

If you don’t have a POA, ask a qualified elder law or estate planning attorney to help you create one. If you already have a POA, review it to be sure it has everything needed, especially if you have a very old POA or one that was drafted in a state other than the one in which you reside.

Reference: The Miami (OK) News-Record (July 7, 2020) “Power of attorney options match different circumstances”

Read more related articles at:

Powers of Attorney Come in Different Flavors

4 Types of Power of Attorney: What You Should Know

Also, read one of our previous Blogs at:

The Second Most Powerful Estate Planning Document: Power of Attorney

Click here to check out our Master Class!

Leaving a Legacy

Estate Planning Is a Gift and a Legacy for Loved Ones

Estate Planning Is a Gift and a Legacy for Loved Ones

 

Without an end of life plan, a doctor you’ve never even met might decide how you spend your last moments, and your loved ones may live with the burden of not knowing what you would have wished. These are just a few reasons why “End-Of-Life Planning is a ‘Lifetime Gift’ To Your Loved Ones,” as discussed in a recent article from npr.org.

It’s important to recognize that planning for the end of your life is actually not all about you. It’s about the ones you love: your parents, spouse or your children. They are the ones who will benefit from the decisions you make to prepare for the end of your life, and life after you are gone. It is a gift to those you love.

So, what should you do?

Start by preparing to have an estate plan created. If you have an estate plan but haven’t reviewed it in the last three or four years, find it and review it. If you can’t find it, then you definitely need a new one. An estate planning attorney can help you create an estate plan, including a will and other documents.

In the will, you name an executor, someone who you trust completely to carry out your directions. Some people choose a spouse or adult child to be their executor. It’s a lot of work, so pick someone who is smart, organized and trustworthy. They’ll be in charge of all of your financial assets and communicating how the estate is distributed to everyone in your will.

Create an inventory. This includes things that are of financial and sentimental value. People fight over sentimental things, so giving your family specific directions may avoid squabbles.

If you have children under age 18, name a guardian for them. This should be a person who knows your children and will raise them with same values as you would.

Pets are often overlooked in estate planning. If you want to protect your pet, in many states you can create a pet trust. It includes funds that are to be used specifically for care for your pet, and a trustee who will be responsible for ensuring that the funds are used as you intended.

Digital accounts are also part of your property, including social media, online photos, everything in your online cloud storage, credit card rewards, email, frequent flyer miles and digital assets.

Make sure your will is executed and in compliance with the laws of your state. If your will is found to be invalid, then it is as if you never made a will, and all your planning will be undone.

You also need an advance directive, a legal document that covers health care and protects your wishes at the end of life. One part of an advance directive gives a person medical power of attorney, so they can make decisions for you if you cannot. The other part is a living will, where you share how you want to be cared for and what interventions you do or don’t want if you are near death.

Reference: npr.org (June 30, 2020) “End-Of-Life Planning is a ‘Lifetime Gift’ To Your Loved Ones”

Read more related articles at: 

Leaving a Legacy Behind: Planning for Modest Estates

How Do You Want to Be Remembered?

Also, read one of our previous Blogs at:

Leaving a Legacy Is Not Just about Money

Click here to check out our Master Class!

 

special needs parent

Possible Pitfalls for Special Needs Planning for Parents

Possible Pitfalls for Special Needs Planning for Parents

 

Public benefits for disabled individuals include health care, supplemental income, and resources, like day programs and other vital services. Some benefits are based on the individual’s disability status, but others are “needs tested,” where eligibility is determined based on financial resources, as explained in the article “Planning for loved ones with special needs” from NWTimes.com.

Needs testing” is something that parents must address as part of special needs planning, in concert with their own estate planning. This ensures that the individual’s government benefits will continue, while their family has the comfort of knowing that after the parents die, their child may have access to resources to cover additional costs and maintain a quality of life they may not otherwise have.

Families must be very careful to make informed planning decisions, otherwise their loved ones may lose the benefits they rely upon.

A variety of special planning tools may be used, and the importance of skilled help from an elder law estate planning attorney cannot be overstated.

One family received a “re-determination” letter from the Social Security Administration. This is the process whereby the SSA scrutinizes a person’s eligibility for benefits, based on their possible access to other non-governmental resources. Once the process begins, the potential exists for a disabled person to lose benefits or be required to pay back benefits if they were deemed to have wrongfully received them.

In this case, a woman who lived in California, engaged in a periodic phone call with California Medicaid. California is known for aggressively pursuing on-going benefits eligibility. The woman mentioned a trust that had been created as a result of estate planning done by her late father. The brief mention was enough to spark an in-depth review of planning. The SSA requested no less than 15 different items, including estate documents, account history and a review of all disbursements for the last two years.

The process has created a tremendous amount of stress for the woman and for her family. The re-determination will also create expenses, as the attorney who drafted the original trust in Indiana, where the father lived, will need to work with a special needs attorney in California, who is knowledgeable about the process in the state.

Similar to estate planning, the special needs process required by Medicaid and the SSA is a constantly evolving process, and not a “one-and-done” transaction. Special needs and estate planning documents created as recently as three or four years ago should be reviewed.

Reference: NWTimes.com (June 21, 2020) “Planning for loved ones with special needs”

Read other related articles at:

11 Things Special Needs Parents Need to Survive and Thrive

Common Pitfalls When Planning Estates for Families with Special Needs Children

Also, Read one of our previous Blogs at :

Special Needs Guardianship Can Be a Challenge

Click here to check out our Master Class!

 

 

Jeremy Renner

What’s the Problem with Actor Jeremy Renner’s Trust for His Daughter?

What’s the Problem with Actor Jeremy Renner’s Trust for His Daughter?

As some things get back to normal, some court cases are moving forward. Actor Jeremy Renner recently filed documents claiming that his ex-wife has been stealing money from their daughter’s trust fund.

Renner’s ex-wife Sonni Pacheco has already confessed to transferring money from the couple’s daughter’s trust fund more than once. An email from April 2019, which was revealed in the court documents, says that she admitted to taking money out of daughter Ava’s account to purchase gifts and keep herself afloat, after spending her own savings on legal fees.

Pacheco wrote: “The money transfers to my bank were to keep me afloat/provide [the minor] Christmas presents/birthday gift bags and essentials for her bday party – after all my savings were spent on lawyers/child custody evaluator.”

Court pleadings show that Pacheco withdrew an additional $10,701.40 to pay her property taxes, when she didn’t have the money available eight months later. In addition, the document said that she took out $20,000 on another occasion in 2019 to pay attorney’s fees. Another $12,000 was also said to have been withdrawn from the trust into her personal checking account.

In total, the court documents say that Pacheco reportedly withdrew roughly $50,000 from her daughter’s trust fund.

The way the trust fund works, is that Renner deposits the money that is supposed to go for educational or medical expenses, as well as extracurricular activities for his seven-year-old daughter. Any amount in child support that is leftover is supposed to go into the trust fund, which Ava will be able to access in 20 years when she turns 27.

At the time of the report in March, Renner was estimated to be paying $30,000 a month to Pacheco in child support before taxes. Pacheco said at the time that she wasn’t getting that much money from Renner and that a large portion of it was going to court bills. She now says she is being “bullied” in this situation.

The couple was first married in 2014, but they separated later that year. That split has become more contentious over time and led to additional court filings and court appearances concerning the well-being of their daughter.

Reference: Wealth Advisor (May 26, 2020) “Jeremy Renner Alleges Ex-Wife Misused Daughter’s Trust Fund In New Filing”

Read more related articles at:

Jeremy Renner Accuses Ex-Wife of Taking $50,000 From Daughter’s Trust Fund

Jeremy Renner Accuses Ex-Wife Sonni Pacheco of Taking $50,000 From Daughter’s Trust Fund

Also, read on of our previous Blogs at :

Why is Ashton Kutcher So Stingy with his Kids’ Inheritance?

 

Gene Link

Gene Role May Be a Link between Dementia and the Coronavirus

Gene Role May Be a Link between Dementia and the Coronavirus

The study in Great Britain is the latest to suggest that genetics may play a part in why some people are more vulnerable to COVID-19 than others. It may also help to explain why people with dementia have been hard hit.

“It is not just age: this is an example of a specific gene variant causing vulnerability in some people,” said David Melzer, a professor of epidemiology and public health at Exeter University and a co-author of the study.

The Guardian’s recent article entitled “Research reveals gene role in both dementia and severe Covid-19” explains that the study published in the Journal of Gerontology: Medical Sciences reports how researchers analyzed data from the UK Biobank, where genetic and health data on 500,000 volunteers aged between 48 and 86 has been collected.

The researchers focused on a gene called ApoE which gives rise to proteins involved in carrying fats around the body and can exist in several forms. One such variant, called “e4”, is known to impact cholesterol levels and processes involved in inflammation, as well as increasing the risk of heart disease and dementia.

They found 9,022 of almost 383,000 Biobank participants of European ancestry studied had two copies of the e4 variant, while more than 223,000 had two copies of a variant called “e3”. The former have a risk of dementia up to 14 times greater than the latter.

The researchers then studied positive tests for COVID-19 between March 16 and April 26, when testing for the coronavirus was primarily done in hospitals, suggesting the cases were severe.

The results showed that 37 people who tested positive for COVID-19 had two copies of the e4 variant of ApoE, while 401 had two copies of the e3 variant. After considering factors such as age and sex, the researchers say people with two e4 variants had more than twice the risk of severe Covid-19 than those with two e3 variants.

One professor observed that it is possible that the role of ApoE in the immune system is important in the disease. Future research may be able to harness this to develop effective treatments.

Reference: The Guardian (May 26, 2020) “Research reveals gene role in both dementia and severe Covid-19”

Read more related articles at:

Alzheimer’s Gene Linked to Higher Risk of Severe COVID-19

Dementia genotype may increase COVID-19 vulnerability

Also, read one of our previous Blogs at : 

Will New Tool Help Dementia Patients and Their Doctors?

 

End of Life Decisions

How Do I Talk about End-Of-Life Decisions?

How Do I Talk about End-Of-Life Decisions?

With the coronavirus pandemic motivating people to think about what they prioritize in their lives, experts say you should also take the time to determine your own end-of-life plans.

Queens News Service’s recent article entitled “How to have the hardest conversation: Making end-of-life decisions” reports that in this coronavirus pandemic, some people are getting scared and are realizing that they don’t have a will. They also haven’t considered what would happen, if they became extremely ill.

They now can realize that this is something that could have an impact upon them.

According to the U.S. Centers for Disease Control and Prevention (CDC), 70% of Americans say they’d prefer to die at home, while 70% of people die in a hospital, nursing home, or a long-term care facility. This emphasizes the importance of discussing end-of-life plans with family members.

According to a survey of Californians taken by the state Health Care Foundation, although 60% of people say that not burdening their loved ones with extremely tough decisions is important, 56% have failed to talk to them about their final wishes.

“Difficult as they may be, these conversations are essential,” says American Bar Foundation (ABF) Research Professor Susan P. Shapiro, who authored In Speaking for the Dying: Life-and-Death Decisions in Intensive Care.

“Now is a good time to provide loved ones with the information, reassurance and trust they need to make decisions,” Shapiro says.

Odds are the only person who knows your body as well as you do, is your doctor.

When thinking about your end-of-life plans, talk with your doctor and see what kind of insight she or he can provide. They’ve certainly had experience with other older patients.

If you want to make certain your wishes are carried out as you intend, detail all of your plans in writing. That way it will be very clear what your loved ones should do, if a decision needs to be made. This will eliminate some stress in a very stressful situation.

Even after the COVID-19 pandemic is over, everyone will still need a will.

Talk with an experienced elder law or estate planning attorney to make certain that you have all of the necessary legal documents for end-of-life decisions.

Reference: Queens News Service (May 22, 2020) “How to have the hardest conversation: Making end-of-life decisions”

Read more related articles at:

Talking About End-of-Life Decisions Won’t Kill You

A Physician’s Guide to Talking About End-of-Life Care

Also, read one of our previous Blogs at:

How Do I Plan for End-of-Life Measures for a Loved One?

steps to take when a loved one dies

Steps to Take When a Loved One Dies

Steps to Take When a Loved One Dies

This year, more families than usual are finding themselves grappling with the challenge of managing the affairs of a loved one who has died. Handling these tasks while mourning is hard, and often families do not have time to prepare, says the article “How to manage a loved one’s finances after they die” from Business Insider. The following are some tips to help get through this difficult time.

Someone has to be in charge. If there is a will, there should be a person named who is responsible for administering the estate, usually called the executor or personal representative. If there is no will, it will be best if one person has the necessary skills to take the lead.

When one member of a married couple dies, the surviving spouse is the usual choice. Otherwise, a family member who lives closest to the deceased is the next best choice. That person will need to get documents from the local court and take care of the residence until it is sold. Being physically nearby can make many tasks easier.

It is always better if these decisions are made before the person dies. Wills should be kept up to date, as should power of attorney documents, trusts and advance directives. When naming an executor or trustee, let them know what you are asking of them. For instance, don’t name someone who hates pets and children to be your children’s guardian or be responsible for your beloved dogs when you die.

Don’t delay. Grief is a powerful emotion, especially if the death was unexpected. It may be hard to get through the regular tasks of your day, never mind the additional work of managing an estate. However, there are risks to delaying, including becoming a target of scammers.

Get more death certificates than seems necessary. Make your life easier by getting at least a dozen certified copies, so you don’t have to keep going back to the source. Banks, brokerage houses, phone companies, utilities, credit card companies, etc., will all want to see the death certificate. While there are instances where a copy will be accepted, in many cases you will need an original, with a raised seal. In fact, in some states it is a crime to photocopy a death certificate.

Who to notify? The first call needs to be to the Social Security Administration. You may also want to send an email. If Social Security benefits continue to be paid, returning the money can turn into a time-consuming ordeal. If there are any other recurring payments, like VA benefits or a pension, those institutions need to be notified. The same is true when it comes to insurance companies, banks and credit card companies. Fraud on the credit cards of the deceased is quite common. When a notice of death is published, criminals look for the person’s credit card and Social Security numbers on the dark web. Act fast to prevent fraud.

Protect the physical property. Secure the home right away. Are there plants to be watered or pets that need care? Take pictures, create an inventory and consider changing locks. Take any valuables out of the house and place in a secure location. If the house is going to be empty, make sure to take care of the property to avoid any deterioration.

Paying the bills. Depending on the person’s level of organization, you’ll have to identify where the money is and if anything is being paid automatically. Old tax returns can be helpful to identify income sources. Figure out what accounts need payment, like utilities.

Some accounts are distributed directly to beneficiaries, like transfer-on-death accounts like 401(k)s, IRAs and life insurance policies. Joint bank accounts and real property held in joint tenancy will pass directly to the joint owner. The executor’s role is to inform the institutions of the death, but not to distribute funds.

File tax returns. You’ll have to do the final taxes, due on April 15 of the year after death. If taxes weren’t filed for any prior years, the executor has to do those as well.

Consider getting help. An estate planning lawyer can help with the administration of an estate, if it becomes overwhelming. Regardless of who handles this process, expect the tasks to take anywhere from six months to two years, depending on the complexity of the estate.

Reference: Business Insider (May 2, 2020) “How to manage a loved one’s finances after they die”

Read more related articles at : 

5 things to do immediately after a loved one dies

What to do when a loved one dies, Our advice can keep a sad event from becoming even more painful

Also, read one of our previous blogs at:

Estate Planning Avoids Probate

 

 

 

New Baby

Do I Need an Estate Plan with a New Child in the Family?

When a child is born or adopted, the parents are excited to think about what lies ahead. However, in addition to all the other new-parent tasks on the list, parents must also address a more depressing task: making an estate plan.

When a child comes into the picture, it’s important for new parents to take the responsible step of making a plan, says Motley Fool’s recent article entitled “As a New Parent, I Took These 3 Estate Planning Steps.”

Life insurance. To be certain that there’s money available for your child’s care and to fund a college education, parents can buy life insurance. You can purchase a term life insurance policy that’s less expensive than a whole-life policy and you’ll only need the coverage until the child is grown.

Create a will. A will does more than just let you direct who should inherit if you die. It gives you control over what happens to the money you leave to your child. If you were to pass and he wasn’t yet an adult, someone would need to manage the money left to him or her. If you don’t have a will, the court may name a guardian for the funds, and the child might inherit with no strings attached at 18. How many 18-year-olds are capable of managing money that’s designed to help them in the future?

Speak to an experienced lawyer to get help making sure your will is valid and that you’re taking a smart approach to protecting your child’s inheritance.

Designate a guardian. If you don’t name an individual to serve as your child’s guardian, a custody fight could happen. As a result, a judge may decide who will raise your children. Be sure that you name someone, so your child is cared for by people you’ve selected, not someone a judge assigns. Have your attorney make provisions in your will to name a guardian, in case something should happen. This is one step as a new parent that’s critical. Be sure to speak with whomever you’re asking to be your child’s guardian and make sure he or she is okay with raising your children if you can’t.

Estate planning may not be exciting, but it’s essential for parents.

Contact a qualified estate planning attorney to create a complete estate plan to help your new family.

Reference: Motley Fool (Feb. 23, 2020) “As a New Parent, I Took These 3 Estate Planning Steps”

Read more related Articles at:

Estate Planning 101: 5 Lessons for New Parents

Estate Planning for New Parents

Also Read one of our previous Blogs at:

Should I Use a Trust to Protect My Children’s Inheritance?

 

 

Grandparents with Grandchildren

How do I include my Grandchildren in my Estate Plan?

How do I include my Grandchildren in my Estate Plan?

Grandchildren are often on the minds of those doing estate planning; learn the best strategies for including them in your plan.

Similarly to planning the transfer of assets to your children, how you plan the transfer of your assets to your grandchildren will likely depend on whether they are adults or minors. Also, special needs children may need complete or supplementary financial support throughout their lives; as a grandparent, you may wish to contribute to that, as well.
Grandchildren may be subject to the generation skipping transfer (GST) tax, which is levied in addition to estate and gift taxes.Additionally, paying for education may be a concern as grandchildren transition into adulthood and beyond. If you haven’t already placed assets in a 529 plan, Uniform Gifts to Minors Act (UGMA) account or Uniform Transfers to Minors Act (UTMA) account, doing so during your lifetime may be a strategic way to reduce the value of your taxable estate while working toward education savings goals.If you have a 529 plan, you generally maintain control of the account until the money is withdrawn. Therefore, part of your estate planning might be to update the successor designation, which stipulates who will take over management of the account if you pass away.

And, as always, ensure your beneficiaries are up to date on other assets that have provisions for naming them, including investment and bank accounts with transfer on death (TOD) designations.

For minor grandchildren

If grandchildren are still minors, you may wish to help ensure they are provided for financially. Even if you have other assets you would like to pass to grandchildren, you may want to consider them when you choose your life insurance coverage. You might also want to plan to help cover the cost of college education through insurance, or to provide for grandchildren into adulthood, as well.

Trusts can be especially beneficial for minor children, as they allow more control of the assets, even after your death. By setting up a trust, you can state how you want the money you leave to your grandchildren to be managed, the circumstances under which it can be distributed, and when it should be withheld. You can also determine if your grandchildren will be able to control the money at a certain age as either co-trustees or full owners.

Trusts

Trusts with distinct benefits for grandchildren

Generation-skipping trusts can allow trust assets to be distributed to non-spouse beneficiaries two or more generations younger than the donor without incurring GST tax.

Credit shelter trusts make full use of each spouse’s federal estate tax exclusion amount to benefit children or other beneficiaries by bypassing the surviving spouse’s estate.

Irrevocable life insurance trusts (ILITs) purchase life insurance policies to provide immediate benefits upon death that do not usually pass through probate.

A trust can also be an effective tool for transferring assets to an adult grandchild, while reducing estate taxes and allowing your influence on the assets even after you have passed away. A simple revocable trust or irrevocable trust may suit your needs, or you may want to consider one of the trusts with distinct benefits for grandchildren, listed at the right.

Retirement plans

Since only spouses have the option of rolling your retirement plan assets into their own IRAs, grandchildren will generally be required to begin taking required minimum distributions (RMDs) soon after your death based on their age—and to pay the associated income taxes.

Additionally, your retirement plan assets will be included in the federally taxable value of your estate. This results in estate tax liability when you pass away (unlike leaving the assets to a spouse, which allows you to take advantage of the unlimited marital deduction).

Although IRAs have no special provisions for naming grandchildren as beneficiaries, your options for grandchildren include:

  • Name grandchildren individually; if any pass away prematurely, the assets will be divided equally among the rest.
  • Choose “Per stirpes,” which means that if one of your children passes away before you do, their share will automatically go to their descendants.
  • Name grandchildren “contingent beneficiaries,” if, for example, you want to name your spouse as the primary beneficiary and your children are financially secure. If your spouse passes away before your IRA is transferred, then the assets would go to your grandchildren.

As always, if you want to name grandchildren as IRA beneficiaries, make sure your designations are up to date.

To learn about the options your grandchildren (and other non-spouse beneficiaries) will have when inheriting an IRA, see If you are a non-spouse IRA beneficiary in Fidelity Viewpoints®.

The rules for 401(k)s and other qualified retirement plans are similar to those for IRAs. If you are married and you want to designate beneficiaries—such as grandchildren—other than your spouse, you may need written consent from your spouse.

Otherwise, retirement plans follow roughly the same guidelines for what is taxable, but other features will vary from plan to plan. Contact the plan’s administrator for specific rules governing your plan.

Special needs grandchildren

For any grandchildren or other beneficiaries who may be unable to care for themselves as adults, you may want to help ensure they have the care and oversight they need for their lifetimes.

If they are unable to make a living for themselves, leaving them assets and making them beneficiaries of life insurance are both options. Trusts can be useful in either case, to help ensure the money is spent properly if they are unable to make spending decisions on their own.

Next step

Estate planning strategies by asset
Consider what kinds of assets you’ll leave to beneficiaries and the top estate planning concerns for each situation.

 

Read more related articles at:

6 Ways You Can Set Up Savings for Your Grandchildren

What’s the best way to invest money for my grandkids?

Also read one of our previous Blogs at :

Can 529 College Savings Plans Be Used Now in Estate Planning?

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