Should you give your kids an early inheritance? This is a common question asked of many estate planning advisors and professionals, but it is not one that you should undertake without the careful planning provided by a knowledgeable attorney. 
Giving your kids an early inheritance might seem like a good way to get things out of your own individual estate, but this can be very problematic from the perspective of passing on those tax consequences to your children, or even if this is viewed by Medicaid as you attempting to transfer assets within a penalty period. Make sure that you consult an experienced estate planning attorney. Making a gift to your children now might initially seem satisfying, but there are numerous things to keep in mind.
First of all, giving this to children now may enable you to provide assistance when they need it most. Since the current high tax exemption for giving can be split between gifts made during your lifetime as well as through your will, this is a great option to consider.
Some of the most important questions that you must contemplate in the process of deciding when to pass on assets include if you were to give to one person now, must you give to everyone? Are you over-giving? And, is a person who is eligible to receive your assets likely to take care of it and be able to manage it effectively.
The best approach may be to give some now and later. This gives you the flexibility to start small and to refine your intent over the course of time. This also means that if you chose to leave an inheritance in your will, you can do so with additional clarity in ensuring the chances that your gift will be productive are much higher than previously considered.
Scheduling a consultation with a knowledgeable estate planning lawyer is one of the first steps required to figure out what is necessary to protect you and your loved ones now and well into the future.
