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.
Of course, if you are willing a large amount to a child, you may not want them to get the full amount all at once upon their 18th birthday. After all, an 18 year old may not be responsible with the money. For these situations, you can set up a trust that releases a set amount of money each week, month, or quarter for the duration of the trust. These payments can start while the child is a minor if you are certain that the child themselves will get the funds.
Keeping a parent from taking a child’s rightful assets can be a nightmare for the child who is left behind. Careful estate planning is necessary to make sure that your beneficiaries get the assets that you want them to have. Contact us today for more information or to schedule your consultation to get started with your estate planning.