Estate planning has always been a challenge. Historically, families would have to steer their long-term investments towards their children, supporting future generations for years to come. However, this concept has been slightly altered in recent decades. It has resulted in a new term entirely, and one that millions of Americans are feeling wholeheartedly.
The Sandwich Generation
The sandwich generation is here, and it is changing how families work estate planning with an attorney in Walker, MN. It is a generation of individuals who are caring for both their children and their parents. With individuals living longer, the interesting ramifications have resulted in a generation caring for twice as many people in often two different ways.
The sandwich generation has requested more and more services to be able to support their parents financially. This requires a tactile approach to estate planning. An attorney in Walker, MN can help navigate this troubling area and find resolutions that make sense for all parties involved.
Gifts and Trusts
Individuals can utilize both gifts and trusts to support both generations as needed. For example, cash gifts can be provided to avoid some taxes. The annual gift policy will allow individuals to give $15,000 a year to families without having to pay taxes. It is a fantastic feature that many within the sandwich generation are taking to heart.
Alternatively, many families are setting up trusts. The trust can be split between the children and the parents as needed. These trust processes are becoming more involved and nuanced to account for multiple parties. It is also possible to add layer. For example, when parents pass away, the funds are then allocated to the children. Additional tax benefits can apply in this matter. Trusts are not as tax-sheltered, but there are viable strategies to minimize excessive payment.
Trusts, gifts and other strategies are designed to accommodate the new world of care. Visit Website Domain for further details regarding estate planning. Make long-term plans that care for loved ones across generational lines. Tactics are changing, and families should be prepared for care that has taken on new and unexpected forms.
