I've spent 30 years building my construction company and it's finally worth something. My grandkids are young but I want to make sure the money from a sale actually reaches them, not lost to taxes or poor planning. Anyone been through this?
Estate Planning
Protecting your life's earnings for your grandkids
We set up a trust for our grandkids before selling our hardware store. The trust owns the assets, not us personally, so proceeds go directly in. Talk to an estate attorney, not just a CPA.
How old are the grandkids? That changes everything. If they're minors, a custodial account might be simpler than a full trust.
They're 5 and 8 right now. I want it protected until they're at least 25. A trust seems like the right direction.
Be caareful with irrevocable trusts. Once you put assets in, you lose control. Make sure you understand the trade-offs before signing anything.
Sam has a point. We went with a revocable lving trust and named the grandkids as beneficiaries. Still gives us flexibility while we're alive.
What about generation-skipping tax? If you're leaving a lot to grandkids directly, that can trigger a hefty tax. Worth asking your attorney about.
Also consider a spendthrift provision so the money can't be squandered or taken by creditors. We included one in our trust.
Lots to think about. I have a meeting with an estate lawyer next week. Appreciate the input.
Make sure the lawyer specializes in business succession too, not just estate planning. Selling a company is different from passing down a house.
Good luck. And don't forget to update beneficiary designations on any retirement accounts or insurance policies. Those override your will.