One of the most important parts of estate planning is designating beneficiaries. If you want to leave assets to your grandchildren or great-grandchildren but not their parents, the situation can become a bit complex. If there are minor children listed as beneficiaries, there are some steps you will need to take to ensure that the money and assets actually go to the children named.
One of the best ways to do this is through a trust. Certain types of trusts can be held until the child is 18 or 21, or you can designate a specific event or time period for the funds to be released, such as upon getting married or graduating from college. A trust that is set up in this way cannot be touched by the child’s parents, or anyone else, until the time that it has been designated to be released.(more…)