It is common for grandparents to leave their grandchildren gifts of property, assets or cash. It is also common for grandparents to want children to spend the gifts wisely, rather than waste it all in one night on the town.
One way grandparents (as well as parents, friends, aunts and uncles) can provide for their loved ones is to make payments directly to educational institutions and medical providers. It is also possible to make payments for medical insurance directly to the insurance provider on behalf of a loved one. When payments are made for tuition and medical expenses directly to the school or to the medical provider, they are not subject to gift taxes as a direct gift of cash or property would be to an individual.
You can start providing for your loved ones right now and not worry about gift taxes while at the same time you can start reducing your taxable estate.
Getting Legal Help
To learn more about estate planning and what you need to do to protect your assets and your loved ones, contact experienced estate planning attorney Elga Goodman. Call us today at 973-841-5111.
Posted in: Estate Planning, New York Estate Planning