For many, becoming a grandparent is an incredibly special time. However, when considering what you can do to help set your grandchildren up for success, estate planning should be a top priority. One option you should take into consideration is establishing a Trust Fund for your grandchildren. If you’re not sure what the benefits of this process are or how to create a fund, you’ll want to keep reading. The following blog explores what you should know about this option and why working with a Medina County, Ohio Trust preparation lawyer is in your best interest if you want to start planning.
What Are the Benefits of Creating a Trust Fund for Grandchildren?
There are many benefits to creating a Trust Fund on behalf of your grandchildren, with the most obvious being that you can help ensure your loved ones are cared for following your passing. By establishing a Trust, you can help ensure your grandchildren have financial support and assistance to put toward their goals.
However, creating a Trust Fund also has the added benefit of control. Most people assume they should leave assets to grandchildren in a Will. While this is an option, it can be incredibly complicated. When young children inherit money, it must be put aside until adulthood. As you can imagine, giving an 18-year-old a substantial amount of money may not be the best idea. Creating a Trust Fund, however, allows you to choose when and how the assets are distributed. For example, you can include stipulations that your grandchildren can receive the funds intended for them when they turn 25 or after they reach a milestone, like graduating from college.
Finally, you’ll find that not only can a Trust Fund protect the assets held inside in the event of a divorce or a lawsuit, but Trust Funds do not have to go through the Probate process. This can help ensure your Beneficiaries receive the full extent of the assets you intend to leave them, as they will not be impacted during Probate.
How Do I Create a Trust?
If you are interested in creating a Trust Fund for your grandchildren, understanding how to do so is imperative. Generally, the first thing you’ll need to consider is the kind of Trust you need. This will depend on the purpose of the trust, your needs, and the needs of your Beneficiaries. As such, the best option is to discuss these matters with an attorney who can help ensure you make the best choice for your needs.
Next, you’ll need to consider who you will appoint as the Trustee. This entity has a considerable number of responsibilities, so carefully considering your choices is critical. In general, your Trustee is responsible for managing and distributing the assets held in the Fund according to the terms and conditions you wish to include. As such, they may be tasked with making decisions at their own discretion, meaning you should choose someone competent, trustworthy, and able to take on this responsibility. It’s important to note that your Trustee has Fiduciary Duty, meaning they are legally obligated to act in the best interest of your Trust.
As you can see, establishing a Trust Fund for your grandchildren can be an incredibly difficult matter. That’s why it’s in your best interest to discuss your legal options with an experienced estate planning attorney. At Krause Law, we understand how important it is to provide for your family, which is why we will do everything possible to assist you during these matters. When you need help, our firm is here. Contact us today to learn more about your Trust Fund options.
