Common Ways to Leave Money to Grandchildren
Lump Sum Gift: e.g., “$5,000 to each grandchild at my death.”
Age-Based Distributions: Create a trust that pays out when each grandchild reaches certain ages (e.g., 25, 30, etc.).
Planning for Future Grandchildren
Your trust should account for grandchildren born after the trust is created.
Wording should include phrases like: “...any grandchildren born after the date of this trust.”
What About Grandchildren Born After Your Death?
A great solution is a “Pot Trust”, which:
Sets aside a percentage of your estate (e.g., 10–25%)
Allows funds to be accessed for health, education, maintenance, and support (HEMS)
Is managed by a trustee who approves distributions based on need
Distributes the remaining balance equally when the youngest grandchild turns 25
Why This Matters
These structures provide flexibility, protection, and fairness for grandchildren of all ages—now and in the future.
Helps grandchildren use their inheritance meaningfully, especially for major life milestones like education and housing.
Key Takeaway
Thoughtfully structuring gifts to grandchildren through a trust ensures their needs are met and your legacy lasts.
Be sure to work with an estate planning professional to tailor the right approach for your family.
This video is for informational purposes only. As always please get professional help before making decision on how to protect your assets.
Share this post