Grandchildren's Inheritance Investment advise

[Starman]

IMO, you should talk to an advisor to make sure your grandfather’s wishes are complied with as he would have wished.

No one is going to have to pay inheritance tax on their gifts.

Texas doesn’t have an estate tax, and unless grandfather’s estate and previous gifts totaled approximately $ 14 million, there would be no Federal tax due either. The federal government levies an estate tax on estates over approximately $14 million in value.

“One of the biggest differences between estate tax and inheritance tax is that only states collect inheritance taxes. There is no inheritance tax at the federal level.

“Although Texas used to have an inheritance tax, it was abolished on September 1, 2015.

Inheritance tax is no longer an issue for Texas beneficiaries.”

https://jm.legal/articles/estate-planning/estate-tax-texas/

[TradAg02]

I know it seems crazy, but there are some very knowledgeable people on this site. Im sure there are some people in that career choice as well

While you are correct, a licensed advisor is generally prohibited from providing advice on a public forum. The nuances of the taxes and legal implications are too great given the limited details you provided and the liability to the advisor is significant. I owned a financial planning firm and we specifically forbid our advisors from providing advice on public forums and social media.

[Huntingfool]

While you are correct, a licensed advisor is generally prohibited from providing advice on a public forum. The nuances of the taxes and legal implications are too great given the limited details you provided and the liability to the advisor is significant. I owned a financial planning firm and we specifically forbid our advisors from providing advice on public forums and social media.

This is very true - best is to ask friends and family on who they use and go meet eyeball to eyeball with them - good luck

[timoub007]

There is some good information above but one thing I have not seen yet for you to consider.

Whenever you get the dispersement of funds figured out, if the money is to be earmarked for education and the grandkids live in Texas, look into the Texas Tomorrow Fund.

How it Works | Texas Tuition Promise Fund

It is a state managed 529 plan that allows you to lock in the price of college in the year that you enter the program. You can elect to purchase as many credits as you wish and can pay over time. Essentially, all tuition is covered at any Texas State System school from the cheapest to the most expensive (UT Dallas currently) for the beneficiary. If the child decides not to attend a Texas school or college at all then the money can be reassigned or withdrawn (with a penalty). I do not know all of the details on that yet, but likely will have to find out in 18 months as my kid looks to be wanting to go to OU instead of the "free ride" we set up in Texas. In all, we put in $20,000 in 2007 and it would be worth about $70,000 today. This somewhat takes the guesswork out of the investing side of preparing your own 529 plans.

Tim

[TheWidowMaker]

Open a 529 for each of your kids and then open one for you and one for your wife. You can change the beneficiary of the 529's in you and your wife's name later on to one of the kids after theirs is depleted. When I opened one for our son through Fidelity when he was born and was doing research that's what I remember it saying. If our son ends up not going to college then I can change the beneficiary of it to someone else to use. All that being said if a 529 is what you choose to do.

I'm not an expert so I'd verify this on your own but that's what I gathered from it.

[tps7742]

This is very true - best is to ask friends and family on who they use and go meet eyeball to eyeball with them - good luck

If a person is looking for a FA this is very good advice above of looking to like minded people you trust of who they use.

[Shane]

Roman, you can contribute 5 years' worth of the $19K annual gift exclusion all at once to a 529 plan. So $95K. Your wife can gift the same amount to the same child, if you have the money. so you and your wife can put up to $190K into a 529 plan all at once. You have to wait 5 years before you can put more into it if you max it out like that.

[lmartin5]

Roman, you can contribute 5 years' worth of the $19K annual gift exclusion all at once to a 529 plan. So $95K. Your wife can gift the same amount to the same child, if you have the money. so you and your wife can put up to $190K into a 529 plan all at once. You have to wait 5 years before you can put more into it if you max it out like that.

Listen to Shane...he does this for a living!