If you want to leave behind some of your assets for your grandchildren, setting up a trust or multiple trusts might be the best way to do that. There are many good reasons to establish a trust instead of just leaving someone a lump sum of money, and we’re sure that a Washtenaw County trusts attorney from our firm can help you find an arrangement that works well for you and your family members.
How Do I Set Up a Trust for My Grandchildren?
If you want to set up a trust, an estate planning lawyer can help you. A trust set up for grandchildren is usually called a “generation-skipping” trust. You fund it with assets and choose a trustee, someone who will be in charge of administering this trust.
Some people set up a single “pot trust” with money for all of their beneficiaries. Others set up individual trusts for each grandchild. Our estate planning lawyers can help you figure out the best option for you.
A trust also gives you the opportunity to set rules about how your assets are used and when they are distributed. You can make the funds available when you pass away, or you can wait for big milestones in the lives of your grandchildren. Maybe they get their money when they graduate from college, get married, or reach a certain age. You can also set things up so that they get their inheritance when they are making a big move, like purchasing a home or starting a business of their own.
What Use a Trust Instead of Just Leaving My Grandchildren Money?
In addition to the flexibility a trust offers, it has another quality that could make it preferable to just leaving your grandchildren lump sums of money. When you pass away, your assets must go through the probate process. This creates court records and can take a while, at least a few months.
A trust and its assets don’t go through probate. This can save time and protect your privacy.
Who Should I Choose as the Trustee?
It’s important to consider who should be given power over the trust you set up for your grandchildren. You want someone responsible and reliable for the role. Having some financial literacy can help too. Many people choose a family member, like one of the parents of their grandchildren, but you can also choose a professional. Someone like a lawyer or accountant may be seen as a neutral party, and that might help prevent any in-fighting.
Talk to Our Estate Planning Lawyers
If you’re thinking about setting up a trust or have some questions about the estate planning process, we want to help. Contact Collis, Griffor & Hendra to schedule a consultation. We can help you figure out the best way to protect your assets and leave something behind for your grandchildren.
