Parents, just like how they take care of their children today, need also to set aside money for their children’s future. One of the best ways to do this is to cut back on taxes especially on real estate and pass the proceeds to your children.
Experts suggest that parents should put their assets in a trust fund that will provide income for the spouse for life and additional funds for other expenses and let the rest go to your children when either of you dies. Another way is to transfer the policy of your life insurance to a trust for your family. The proceeds then will not be taxed in your estate should you die.
Do pass on your valuables like antiques and jewelry to your kids. This will get them out of your estate and won’t lessen your present income.
You can also skip a generation to avoid tax when it concerns inheritance. For instance, you can let your grandchildren inherit your estate so your own children will avoid estate tax problems. Or you can let your children inherit your parents’ estate by disclaiming your inheritance when they die.
