It is common for people to want to leave something behind for their loved ones. As they work through the estate planning process, they may consider the various ways in which they could leave bequests to younger generations. Of course, most Texas residents do not want their young loved ones to spend their bequests irresponsibly and may wonder what they can do to prevent that.
Often, a useful planning tool for individuals in this situation is a trust. A trust allows parties to have more control over how beneficiaries can use assets left behind. If a person has multiple individuals to leave funds to, such as a grandparent wanting to leave funds for grandkids, a pot trust could allow multiple individuals to benefit from it while having a trustee to manage the spending.
It is also possible for individuals to gift money to their loved ones while they are still alive. However, there are tax implications for gifting funds over a certain amount. If a person gifts no more than $15,000 each year to each loved one, gift taxes are not applied. Of course, gifting funds does not provide as much control over the use of the money.
It can be immensely important for Texas residents to find ways to provide for younger generations without inadvertently causing issues. Fortunately, there are a number of estate planning options that can help individuals find the right method for bequests. Interested parties may want to go over these options with knowledgeable attorneys who can assess the personal details involved and help determine which planning options may be best.