Protect Your GrandKids
You have done well in life, and you’re planning on giving the bulk of your estate to your children. But what about your wonderful grandchildren????? Some of our families want to give it all to their children. They figure that their children will take care of any grandchildren. Others want each grandchild to receive a lump-sum of money. Still others want to help guarantee that the money will be used a bit more wisely.
Here's something to think about: A Grandchildren's Trust (aka Grandparents' Trust)! This irrevocable trust becomes a section in your living trust. Generally, an amount of money, say $100,000, is allocated to this trust AFTER you, or you and your spouse, pass away. The trustee, usually your son or daughter, uses the funds of the trust to help pay for education or unusual medical expenses of your grandchildren. All of the grandchildren benefit until the trusts stops. Most stop when the youngest grandchild reaches 23 years old. Then, what's ever left over in the Grandchildren's Trust is divided equally among all of the grandkids.
You decide what you want, and what works best for your family!