Talk to an experienced estate planning lawyer
Many people would like to leave money and other assets to their grandchildren when they die. A generation-skipping trust may be a good option. These types of trusts can be complicated and there are many things to think about. Hongo Law Office, LLLC can review these types of trusts with you to help you determine if they are appropriate for your situation.
Estate planning attorney Yuka Hongo has lived and worked in Japan and Hawaii. Her experience, legal knowledge, bilingual skills and understanding of Japanese and American cultures help clients overcome the barriers they face when dealing with estate planning issues. She can guide you through the process to create an estate plan that meets your needs.
Prepare for your family’s future
A generation-skipping trust is one in which a person “skips” a generation and gives assets to grandchildren. Beneficiaries don’t have to be grandchildren or even family members. They can include anyone who is at least 37½ years younger than the grantor (the person putting assets into the trust). A beneficiary cannot be a spouse or former spouse.
These trusts are a way of passing money onto your grandchildren without it being subject to estate taxes twice. Because your children do not inherit the assets in the trust, they do not have to pay estate taxes. But there are some tax implications if the amount transferred is very high and exceeds a certain threshold that is adjusted annually.
Generation-skipping trusts may be a good option for people with large estates. There are also other benefits. Your children will not have access to the assets in a generation-skipping trust, but they will have access to the earnings on those assets. Provisions can also be put in place that protect assets if a beneficiary is financially irresponsible.
There are some things to consider when setting up a generation-skipping trust. This type of trust is irrevocable, meaning you can’t change the terms or remove assets once they are transferred. Your own children won’t have access to these assets. There also needs to be careful planning to avoid paying additional taxes.
It’s never too early to start planning
If you have a large estate and want to provide for your grandchildren, a generation-skipping trust might be a good option as part of a comprehensive estate plan. Estate planning puts you in control of what happens to your property, protect your assets and help your family avoid legal problems in the future.
Whether you live in Hawaii or Japan, attorney Hongo can help. She can meet with you to discuss your financial situation, review your goals, explain your options and answer any questions you have. She can then help you create an estate plan that is effective and appropriate for your situation.
Learn more about generation-skipping trusts and other types of trusts that may meets your needs. Contact us to schedule a consultation at a time and place that is convenient for you. Attorney Hongo meets with clients at her Honolulu office. She also meets with clients in Japan, which she typically visits twice a year.