At Logan & Logan LLP, we understand that nothing matters more to you than family, especially those sweet grandbabies. Whether they’re toddling around your kitchen or heading off to college, you want to be sure they’re safe, supported, and set up for success, even after you’re gone.
Estate planning is one of the most loving things you can do to protect your grandchildren’s future. Here’s how to make sure they’re truly taken care of with the right legal documents in place.
Include Your Grandchildren in Your Will or Trust
If you want your grandchildren to inherit specific assets, whether that’s a sum of money, a piece of jewelry, or your summer cottage in the Cape, you need to put it in writing. A properly drafted Last Will and Testament or Revocable Living Trust ensures your wishes are honored.
You can:
- Leave them a fixed dollar amount or percentage of your estate
- Set aside specific property
- Name a trust as the beneficiary, with clear instructions for how and when they receive funds
Key Consideration: If your grandchildren are minors, inheritances should never go directly to them. Use a trust to manage assets on their behalf until they’re old enough to handle it responsibly.
Set Up a Grandchildren’s Trust
A testamentary trust (created through your will) or a revocable living trust (created during your lifetime) can be tailored to your family’s needs. These trusts allow you to:
- Appoint a trustee to manage funds until your grandchild reaches a specified age
- Provide for education, housing, and healthcare
- Protect the assets from mismanagement, lawsuits, or divorce
You can even stagger distributions – for example, 25% at age 25, another 25% at 30, and the remainder at 35 – so they don’t receive everything all at once.
Use 529 Plans or Educational Trusts
If your goal is to help with college expenses, a 529 college savings plan can be an excellent tool. You can name a grandchild as the beneficiary and contribute during your lifetime. Some clients also create educational trusts with broader flexibility, especially if they want to include private school tuition or vocational training.
Make Lifetime Gifts Strategically
Under current federal tax law, you can give up to $18,000 per grandchild per year (as of 2024) without dipping into your lifetime gift exemption. These gifts can be used to help with school, housing, or other essential needs, and they can also reduce your taxable estate.
Talk to your estate planning attorney about whether annual exclusion gifts, direct tuition payments, or larger strategic transfers make sense for your family.
Name a Guardian or Custodian
If your grandchildren are minors and their parents aren’t in the picture (or you’re raising them yourself) it’s critical to name a guardian in your will and establish a financial plan for their care.
Even if their parents are alive and well, it may be wise to name a custodian under the Uniform Transfers to Minors Act (UTMA) for small gifts, or set up a trust with a trustee you trust to act in your grandchildren’s best interest.
Don’t Forget the Health Care & Legal Documents
If you’re raising your grandchildren or just deeply involved in their lives, you’ll want to make sure your own health care proxy, durable power of attorney, and HIPAA release are up to date. These documents allow your family to help manage your affairs and medical decisions if needed.
Having these in place ensures your grandchildren won’t be caught in legal limbo if something happens to you.
We Can Help You Build an Estate Plan That Lasts
At Logan & Logan LLP, we help grandparents across the South Shore of Massachusetts leave a legacy that truly reflects their love for their families. Whether you want to create a trust, gift assets, or just get your basic documents in order, we’ll guide you through each step with care.
Call us today at (617) 209-3784 or schedule a consultation at our Quincy office or by Zoom. We’d be honored to help.