Gift Planning is a strategy often employed where families have a revocable trust that distributes assets to minor or adult children over a period of time.  For example, a parent may choose to gift money on an annual basis to a child for tax purposes, and with the condition that they are to receive disbursements once they have reached a certain age. At age 18 and subsequent periodic times, the parent may have scheduled disbursements so that the child does not spend all of their inheritance with youthful exuberance and a lack of good judgment. 

 

There are significant tax rules that govern tax liability for monies that are gifted to children, which may impact the tax position and future income of a surviving spouse.

 

Retirement Assets.  In the event that a divorced spouse had a property settlement from their ex-spouse that included retirement plan assets, there may be questions about their continuing rights to such benefits when their previous spouse re-marries.

 

This article, Blended Families and Estate Planning Issues, was written by Attorney Richard P. Bourne-Vanneck of St. Thomas, U.S. Virgin Islands.

 

© Copyright 2015 Law Offices of Richard P. Bourne-Vanneck. All Rights Reserved.