Benefiting Grandchildren Through Lifetime and Testamentary Transfers

MichaelA. Kirtland (Kirtland & Seal, L.L.C., ColoradoSprings, Colorado) has published his article, Benefiting Grandchildren Through Lifetime and Testamentary Transfers,in the May 2007 edition of Estate Planning.

Here is the conclusion:

This article was intended topresent the multiple options for making transfers from grandparents tograndchildren, including the advantages and limitations of each alternative. Thecurrent tax system was designed to limit the abilities to make such transferswithout the imposition of a tax burden, thereby limiting the ability orincentive to crate “dynasty” trusts. Despite such a taxation philosophy, however, the Internal Revenue Codeoffers many possibilities to provide for the benefit of grandchildren. The estate planner with a broad knowledge ofthese options can provide clients with numerous opportunities to benefit theirgrandchildren without significant tax burdens. Additionally, knowing the various options allows clients to customizetheir gifting plans to meet the intended gift-giving goals.