Apart from deciding how assets are to be distributed, being able to provide for grandchildren is also a major benefit of estate planning. You can set aside funds to pay for college, weddings, and other expenses that come with life’s milestones. When you speak with an attorney, they will recommend leaving money in your will or creating a trust. To prepare for the meeting, below are useful insights about both options. 

When Inheritance Is Available Differs 

When grandchildren can access funds is the main difference between willing the inheritance or putting it in a trust. With a will, property and assets are only available after you pass away. You can include in the document how you would prefer the funds be spent. Wills also go through probate court, where judges determine the validity of the document and manage the distribution of assets.

A trust is not subject to the probate process, and beneficiaries can obtain portions of their inheritance while you’re alive. You assign a trustee to control the fiduciary arrangement. They will release the funds according to your specific guidelines.

Consider Grandchildren’s Ages When Deciding

While estate planning, whether inheritors are small children or young adults matters. If you pass away before a grandchild turns 18, a custodian, often a parent or estate executor, will hold on to the inheritance until the child reaches the age of majority. Although you can recommend how the inheritance be used, your wishes don’t have to be honored. A grandchild could drain their inheritance as soon as they turn 18.

In this case, it might be best to arrange a trust in which you can dictate how the money be spent. You can stipulate the trustee only release funds when beneficiaries reach certain ages or need money to cover specific expenses like college tuition.

If grandchildren are already adults or entering adulthood when you start estate planning, they might be financially responsible enough to receive their inheritance in a lump sum through a will. Putting money in a trust could also be beneficial to ensure they have financial stability throughout an extended length of time.

Estate planning must follow certain legal standards, which is why you should work with the lawyers at Wills and Trusts Hawaii in Honolulu. The counselors are well-versed in the complexities of estate law and will make sure your documents meet the court’s criteria. Call (808) 792-8777 or visit the legal team online to request a free consultation.