Are the Grandchildren in Your Will or Trust?
We all wish to pass on hard-earned wealth to our offspring. With grandkids, especially, we often share a special bond that makes us want to provide well for their future. Do you have the proper precautions in place for these dreams to become reality? If you’re planning to include the grandchildren in your will or trust, here are five potential dangers to watch for, and ways you can avoid them.
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No age stipulation
We have no idea how old the grandchildren will be when we die. If they are under 18 or financially immature when you pass on, they could receive a large inheritance before they’re prepared for it. This invites conflict, confusion, and waste.
Avoiding this pitfall: Create a long-term trust for your grandchildren that provides supervision, regardless of their age when you pass away.
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Too much, too soon
Even if your grandkids are legally old enough to receive an inheritance, the inheritance could still be quickly squandered. What if they haven’t learned to properly handle large sums of money?
Avoiding this pitfall: Outright or lump-sum distributions are usually not advisable. Luckily, there are many options available. From staggered distributions, to leaving their inheritance in a lifetime, “beneficiary-controlled
