If you want to leave something behind for future generations, our Rockland County estate planning lawyers can help you set up trusts for your loved ones. You don’t just have this option when leaving assets to your children or spouse though. You can also set up a trust for your grandchildren if you wish to.
How Do I Set Up a Trust for My Grandchildren?
When you want to set up a trust for your grandchildren, you can just tell one of our lawyers about your plans, which assets you want to place in the trust, and what kinds of rules should govern it. Once you create the trust, you fund it with your assets and choose a trustee, someone to look after it.
You have some flexibility here when using a trust. Instead of just leaving your grandchildren a lump sum of money when you pass away, you can set up a trust to give out funds at certain times. Maybe the trust pays out each grandchild’s share when they graduate from college or get ready to buy a home. This can also help prevent your grandchildren from squandering their inheritance when they are young.
Some people set up a trust for all of their grandchildren, while others set up individual trusts for each one of them. You can also decide whether you want the trust to be revocable or irrevocable. You can change the terms of a revocable trust whenever you want to, but an irrevocable trust cannot have its rules changed or tweaked. This kind of arrangement offers other benefits though, like protection from creditors.
What Are the Advantages of Using a Trust?
Setting up a trust for your grandchildren instead of just leaving them a lump sum can also be preferable because a trust doesn’t have to go through the probate process. When you pass away and your assets are passed down, this process can take a while to finish, meaning that it can take quite some time for your loved ones to receive what you left behind for them.
A trust doesn’t need to go through probate. That doesn’t just save you time, but it keeps your affairs more private too.
Who Should Be the Trustee for My Grandchildren?
A trustee should be someone who is fiscally responsible and ready to offer guidance to your beneficiaries. They should be someone that you can rely on. One of the parents of your grandchildren might be a good fit, but if you want to avoid any accusations of favoritism you can always go with a professional like a lawyer or an accountant.
Talk to an Estate Planning Lawyer
If you want to learn more about your estate planning options and how trusts can help safeguard your assets, contact the Lauterbach Law Firm. We’ll help you create a plan that’s unique to your estate.
