We have a question about what the best way to leave money behind for kids or dependents is. Alan has heard us say that it’s not wise to put their names on the account, so he wants to know the right way to do it. Let’s take this in twofold and discuss both leaving money behind while you’re alive and after you’ve passed away.
When it comes to giving money while you’re alive, it’s always a good idea to see people’s reactions. Gifts of cash, up to $17,000 a year, or paying for education directly to the institution are good strategies. This way, you get to see the impact of your generosity and it’s also a great way to reduce your estate taxes.
When it comes to leaving money behind after you’ve passed away, one of the best gifts you can give your heirs is a good plan. Many people have accounts all over the place and it can be a nightmare trying to find all the different pieces and put it all together. By having a well thought-out estate plan that lays out your wishes, you can make sure that your financial situation mirrors your desired outcome.
One of the most important things to keep in mind is to make sure that your beneficiaries are updated and that you have transfer on death or payable on death listed on your accounts. This will ensure that your money goes directly to your beneficiaries without any issues. It’s also a good idea to make a list of the “soft” items, like a watch or car, and leave clear instructions about where you want them to go. This way, you can avoid any family disputes over who should receive these items.
In conclusion, whether you’re giving money while you’re alive or leaving it behind after you’ve passed away, it’s essential to have a plan in place. Having a well thought-out estate plan and keeping your beneficiaries updated is the best way to make sure that your money goes to the right place and that your wishes are carried out. And always remember, the best gift you can give your heirs is a good plan.