Can I ensure a portion of my child's inheritance goes to my grandson's education?

Question

My wife and I just wanted to leave everything in our estate to our son, but we want to make sure a portion is used for our grandson's (his son's) college education. How can we do this?

Erven Nelson · Answer

You can accomplish these goals through a trust, or possibly two trusts.  You should consider a separate education trust for your grandson's education, with your son as the trustee.  My partner specializes in education trusts, and can help you.

Christine Socrates · Answer

Yes, you can do this by setting up a revocable trust that has provisions that provide for your grandson's education.  By doing this by trust, you are able to make provisions that will help you accomplish your estate planning goals and also make changes if those goals change through the years.  If you would like assistance, I would be happy to speak with you.

Thomas Phipps · Answer

You can include a clause that leaves a specific amount to pay for college expenses.

Neal Michael Rimer · Answer

You can put a fixed amount of money into a 529 plan for your grandson.  If you guess as to the right amount to put away, then this might work for you.  A better, more sophisticated way may be to create a revocable inter vivos trust (living trust) and upon your and your wife's death, the living trust would provide that a sub-trust be created that would benefit your son and grandson.  With an independent trustee, then your grandson's education, and support during school if you desire that, would be paid by the trustee.  During your grandson's schooling, if you son needed money, the trustee could distribute funds to your son.  When your grandson finishes school, then distribution(s) would be made to your son.  In this way, you would insure that your grandson's education is truly provided for without future complications.

Aaron Goren · Answer

Create a trust with certain funds set aside for your grandson with instructions how it is spent.

Nathan Wagner · Answer

You can accomplish this by leaving some money for your grandchild in a trust and specifying that the trust is to be used for his education. An estate planning attorney can help you set this up.

James Maguire · Answer

With an educational trust.

Mark T. Peters · Answer

You need to set up a testamentary trust for your grandson.  My own preference would be to have somebody other than your son be the trustee so there is no conflict.  Also, is it possible your son will have other children?  If so, you might want to include any of your son's children as the beneficiaries. When the educational requirements have been met, you can then have the remainder go to either your son or your grandson, as you see fit.  I really think you need to talk with a local attorney to get this accomplished.  This also assumes that there will be sufficient assets to effectively fund the trust.  If you don't have at least $100,000 to put into the trust, it may not be worth it.  But again, talk with your attorney about it.

Norman Green · Answer

You don't leave everything outright to your son.  Part of it should be left in trust for grandson's education.

Bernard H. Greenberg · Answer

The best way to accomplish this is to carve out a portion to be in a trust for grandchildren. Then you can specify what you want that used for.

James Frederick · Answer

A trust is the best and safest way to accomplish your objective. Your son could be the trustee, if you wish. If you give the funds directly to your son, however, they are his to do with whatever he wishes. If he gives them to his son, it could be considered a gift. A trust eliminates the need for probate and makes sure your intent is clear. The trust should be drawn up by an attorney.

Jayne Sebby · Answer

Set aside a specific sum in your will for your grandchild(ren), to be put in a trust and to be used for post-high school education.  Describe how the money should be used if for some reason the child(ren) doesn't or can't attend college.

Brian Haggerty · Answer

Look at options available to you during your lifetimes; I think the education IRAs, for example, are designed for grandparents. Also, look at "529" plans. If you want to do it in your will, leave a portion in trust for the grandson and specify that it is for education (also leave the trustee discretion to spend on extraordinary health care, if needed).

Victor Waid · Answer

Suggest you consult with an estate planning attorney to have a trust prepared with your special instructions re son's receipt of and distribution funds for education purposes, that  trustee will be required to follow when time comes for son to inherit.

Dara J. Goldsmith · Answer

Include it in a Will, Trust or establish a 529 plan.  I suggest that you meet with an estate planning attorney in your area to address the options.

John Brennan · Answer

By will, by trust - lots of ways.  Do it right and see an attorney to maximize the benefit to your intended heirs.

Christine James · Answer

You need to amend your will or trust to specify what you want to go to your grandson, otherwise it is at your son's discretion.

Edwin K. Niles · Answer

There are several ways to do this, but a detailed discussion would be advantageous.  Please see an estate planning lawyer.

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Can I ensure a portion of my child's inheritance goes to my grandson's education?

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