Being able to help loved ones financially is something we all want to do. As a parent, you want to help your children or grandchildren. If your kids or grandkids need some money, should you give them a large lump sum? One option that more people are turning to is a living inheritance.
A living inheritance is giving money to your children or grandchildren now instead of waiting until you pass away.
Many situations call for you to help your loved ones with money. Maybe your child needs help with a downpayment on a new home, reliable transportation or could use help with college funds. You want to see your children succeed in life… but is a living inheritance the right option for you and your family?
Some questions to ask are:
We recommend you sit down with your children or grandchildren and discuss your finances. It may be uncomfortable at first, but understanding everyone’s wishes and situations will help avoid problems in the future.
This is something that you want to consider carefully. There are some benefits and disadvantages to a living inheritance.
We sometimes advise gifting small amounts of money through the years rather than one large lump sum. This can help your child without overwhelming them.
Before you do anything, speak with your estate planning attorney to understand exactly how much you can give and still make sure you will live comfortably for the rest of your life.
Please talk with us to ensure a living inheritance is the best option for you and your family. An experienced estate and probate lawyer can guide you through the process so nothing is overlooked, and you can understand the tax laws concerning your gift. To talk to an experienced estate planning attorney, contact the Estate & Probate Legal Group at 630-864-5835.
Areas we serve: Cook, DuPage, Kane, Lake and Will counties.