Planning for Grandchildren
WE WOULD LIKE TO LEAVE OUR ASSETS TO OUR CHILDREN TO PROVIDE FOR THE EDUCATION OF THEIR CHILDREN (OUR GRANDCHILDREN) AT LEAST THROUGH GRADUATE SCHOOL. BUT WE ARE A LITTLE AFRAID THAT OUR CHILDREN WILL NOT USE THE INHERITANCE FOR THAT PURPOSE. IS THERE A WAY TO ENSURE THAT OUR WISHES ARE CARRIED OUT?
Yes. You can leave your assets in trust, with the income and principal to be used as needed for the education of your grandchildren. You can also provide that after the last grandchild has been educated, the remaining principal is to be given to your grandchildren. If you were to pass the excess to your children, there would be generation-skipping transfer tax consequences.
ONE OF MY SONS IS NOT MARRIED, AND HE'LL PROBABLY NEVER GET MARRIED. CAN I PREPARE MY ESTATE SO THAT ANYTHING I LEAVE HIM WILL GO TO MY OTHER GRANDCHILDREN AFTER HE DIES?
Absolutely. The ability to accomplish this is one of the great benefits of leaving property to your children in trust. By leaving property to your son in trust, rather than through an outright distribution, you can specify that he has use of the property during his lifetime and that, when he dies, it passes according to your instructions to your descendants.