When you enter retirement, it is likely that you will start to think about how you would like your assets to be used at the end of your life. It is very common for those planning their estate to decide that they would like a portion of their assets to go to their grandchildren. However, while they have all the best intentions for these assets to be inherited by their grandchildren, it is likely that they also have concerns about large sums of money being inherited by young people, and want to make sure that the assets will be used in a wise way.
This is why many people decide to set up a trust fund for their grandchildren. This is a way to hold money intended for a particular person, with controls and supervision in place, based on the particular circumstances.
What are the benefits of trust funds for a grandchild’s inheritance?
A trust fund for a grandchild can create tax advantages which can lead to lucrative savings on your behalf. In addition to this, you will be able to set parameters to guarantee that the money to be inherited will be used wisely. For example, you may declare that the grandchild in question does not inherit the trust fund until he or she turns 25, for example. You could also establish an allowance procedure where the grandchild inherits in monthly or yearly stipends.
If you are considering setting up a trust fund for your grandchild in the state of Massachusetts, it is a good idea o get sound legal advice.