A lot of people think that estate planning is nothing more than drafting a will that evenly divides their assets amongst their children. But estate planning can be much more than that if you want it to be. In fact, the process is highly customizable so that your needs and vision for the future can be met. Let’s take a look at one estate planning tool that you might want to consider making a part of your estate plan.
Is a generation-skipping trust right for you?
While a lot of people who engage in estate planning focus on leaving assets to their spouse and their children, others may want to include their grandchildren in the process. This is where a generation-skipping trust can prove beneficial.
This type of trust allows assets to bypass your children, which removes those assets from estate tax considerations. Therefore, if you have significant assets, which may or may not include a business, then a generation-skipping trust could save your family a lot of money. It can also be a great way to ensure that your family has long-term financial health.
What about your children?
A generation-skipping trust doesn’t have to cut your children out completely, either. When you create the trust, you can indicate that your children are to receive income that is generated by the trust’s assets. They simply can’t take ownership of the assets themselves lest those assets become exposed to estate taxation. The income generated by the trust can be significant, thereby providing your children with whatever additional financial support you want to give them.
Create a plan that’s right for you
Regardless of the value of your assets, custom-tailored estate planning has something to offer you. This is why you’ll want to learn about your estate planning options and create a plan that satisfies your wishes for the future. If you think that you could benefit from some education and assistance with this process, then you might want to seek out competent, experienced legal assistance.