Although Tennessee’s inheritance laws do not automatically entitle grandchildren to a portion of the estate, proactive estate planning through a will or trust empowers you to control what you leave your grandchildren. By taking the necessary steps to incorporate explicit provisions and effectively communicate your intentions, you can guarantee that your grandchildren receive what you plan to leave them.
By default, Tennessee inheritance laws require that a deceased person’s estate is split among their surviving spouse and children. Tennessee recognizes adopted children as the same as biological children, but grandchildren are not directly entitled to an inheritance.
To guarantee that your grandchildren inherit what you desire, it is crucial to include specific provisions in your will or trust. This article provides valuable insights into grandchildren’s inheritance rights in Tennessee and highlights the importance of proactive estate planning.
How Can I Make Bequests to My Grandchildren?
A common question that arises when estate planning is “How can I make bequests to my grandchildren?” Whether it’s a specific gift you want to leave your grandchild or a portion of your total estate, there are several ways to leave an inheritance to your grandchildren including:
- Creating a comprehensive will
- Setting up a trust
- Communicating with your family members
- Seeking professional guidance
Understanding Tennessee Inheritance Laws
Tennessee’s inheritance laws are primarily governed by the state’s intestacy laws, which determine the distribution of assets in the absence of a will. Grandchildren usually do not get inheritance according to Tennessee’s intestacy laws—they are only eligible in certain circumstances. Instead, the laws prioritize the deceased’s immediate family members, such as their spouse and children.
Tennessee State Intestacy Law
If a will isn’t present, the decedent’s estate and assets are distributed first to their spouse and surviving children. The only way a grandchild can receive part of the estate is if the decedent’s child (the grandchild’s parent) has already passed away.
Instead of leaving this to a probate court to sort out, it’s in your best interest to specifically name grandchildren in a will.
Learn more about Tennessee’s state intestate laws.
Ensuring Your Grandchildren Receive Their Inheritance
To ensure that your grandchildren receive their inheritance, it is vital to create a comprehensive will. By doing so, you gain control over the distribution of your assets and can designate specific gifts or financial provisions for your grandchildren.
How to Update Your Will to Include Grandchildren as Beneficiaries
While you certainly can add a grandchild to your will on your own, it’s important to avoid common mistakes. For example, someone with many grandchildren may leave a sum total that’s worth more than the actual value of the estate after taxes and fees, or unintentionally ambiguous phrasing could lead to confusion and disputes. An attorney can assist you by ensuring that the amendments comply with Tennessee’s legal requirements.
At Johnson, Murrell, & Associates, we are well-versed in creating estate plans that preserve your family’s assets and give you peace of mind that your loved ones will receive the gifts you wish to leave them. We can ensure your grandchildren and even unborn grandchildren are included as beneficiaries in your will.
Do you need help adding your grandchildren to your will? Contact us here for help!
The Role of Trusts in Grandchildren’s Inheritance
One effective estate planning tool that can safeguard your grandchildren’s inheritance is a trust. By setting up a trust, you can specify how and when your grandchildren will receive their inheritance. Trusts provide numerous benefits, including:
- Asset protection
- Tax advantages
- Ability to appoint a trustee
Asset Protection
Setting up a trust for your grandchildren can set guidelines on how the money should be used and distribute inheritance at certain milestones like birthdays or graduations. This control allows for greater flexibility in determining how and when your assets are distributed to beneficiaries, which can be particularly advantageous when dealing with minor beneficiaries or individuals with special needs.
Tax Advantages
Trusts can provide several tax advantages, depending on the type of trust and the specific circumstances. Some common tax benefits associated with trusts include:
- Gift tax exclusions
- No income tax on investments and capital gains
- Bypassing the probate process
Trusts can be complex legal agreements. It’s advisable to enlist professional legal services when deciding if a trust is right for you, as well as deciding which type of trust to utilize.
Ability to Appoint a Trustee
A trustee manages and protects the assets in the trust until your grandchildren reach a certain age or milestone. Many people often choose a family member as a trustee. A trustee can relieve you of the day-to-day responsibilities of asset management, allowing you to focus on other aspects of your life while knowing that your assets are in capable hands.
Creating a will or a trust early on is incredibly important, but discussing the contents of these legal documents with your family can be just as crucial.
Communicating Your Wishes
Whether you create a trust, will, or both, it’s essential to communicate your intentions and wishes to your family members. Discussing your estate planning decisions openly and honestly with your children and grandchildren can help foster understanding and ensure that everyone is aware of your desires. This open dialogue also provides an opportunity to address any concerns or questions they may have.
Open communication about your will can also help down the road with mitigating disputes among heirs or beneficiaries, which can cause tension in family relations and increase probate costs.
Seeking Professional Guidance
Navigating the intricacies of estate planning and ensuring your grandchildren’s inheritance can be overwhelming. To make the process smoother, you can seek guidance from experienced estate planning attorneys, like the team at Johnson, Murrell, & Associates.
We can help you understand Tennessee’s specific laws, draft a legally binding will, and create trusts tailored to your unique circumstances. An attorney can also assist in updating your estate plan as life events unfold, ensuring your wishes are always up to date.
Connect with a probate attorney today to ensure your wills are in order.
While Tennessee’s inheritance laws may not automatically grant grandchildren a share of the estate, proactive estate planning through a will allows you to secure their future. By taking the initiative to include specific provisions and communicate your desires, you can ensure that your grandchildren receive their rightful inheritance.
With the assistance of an estate planning attorney, you can navigate the legal complexities and leave a lasting legacy for generations to come. Act now and prioritize your grandchildren’s inheritance, providing them with financial stability and a tangible representation of your love and care. At Johnson, Murrell, & Associates, we understand that handling a loved one’s estate and bills after their passing is an emotional, stressful experience. Our job is to make your life easier, which means guiding you through the process so you understand what’s to come. To schedule a consultation, call us at 865-453-1091 or schedule an appointment.
