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Creating assets for your grandchildren

[ 0 ] December 4, 2013 |

Spectrum Financial Solutions, New Jersey, Florida, Assets for grandchildren

Did you know that when you leave your children an inheritance the federal government taxes them?  And then the same thing happens when your children leave your grandchildren an inheritance.

If you were thinking about leaving your grandchildren the inheritance, the Generation Skipping Transfer (GST) tax has closed any tax loopholes for that.

With a couple of exceptions.

Gift Tax Exclusions

This exclusion allows you to gift up to $13,000 a year ($26,000 for married couples) to each grandchild, or another individual, without incurring a gift tax.

This path reduces the amount of your taxable estate and gives you the joy you create when giving these gifts to your loved ones.

Pay for Education and Healthcare

You can also pay all or part of your grandchild’s tuition or medical expenses.  There is no GST when opting for this route.

GST Gift Trust

You can create a GST gift trust for each of your grandchildren.   When  your grandchildren receive the trusts; the value may have grown dramatically thanks to the accumulation of interest and dividends. Your grandchildren will inherit the assets entirely free of estate tax and GST tax.

Dynasty life insurance trusts

This option is a much more sophisticated strategy involving insuring the lives of you and your spouse, placing the insurance policy in a trust, listing your grandkids as the beneficiaries and contributing money to the trust to pay the premium.

Contact us today to determine which way will work best for you.

Spectrum Financial Solutions, New Jersey, Florida

Spectrum Financial Solutions, LLC located in New Jersey and Spectrum Financial Solutions, LLC located in FL have been assisting individuals and businesses with their financial challenges for over 30 years.  Do you need to know about Privately Financed Universal Life Insurance located in FL? Call us today. Family Legacy Unitrust Edge located in NJ has been created to help families establish lifetime legacies in a unique manner that simultaneously addresses social and family needs. Applicable Federal Rates located in FL affect many of your planning tools.

George Klahre
10110 SE Osprey Pointe Dr.
Hobe Sound, FL 33455
732-450-9530
Facebook | LinkedIn | Blog |  Email

Spectrum Financial

Spectrum Financial Solutions, LLC located in New Jersey and Spectrum Financial Solutions, LLC located in FL have been assisting individuals and businesses with their financial challenges for over 30 years.  Do you need to know about Privately Financed Universal Life Insurance located in FL? Call us today. Family Legacy Unitrust Edge located in NJ has been created to help families establish lifetime legacies in a unique manner that simultaneously addresses social and family needs. Applicable Federal Rates located in FL affect many of your planning tools.

George Klahre
10110 SE Osprey Pointe Dr.
Hobe Sound, FL 33455
732-450-9530
Facebook | LinkedIn | Blog |  Email

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