Many clients think of Estate Planning in terms of planning for their spouse or children, especially minor children. However as life progresses and parents become grandparents, there are additional considerations to work through.
Where should a bequest to an Adult Child go in the event he or she passes before you? Does that share go to his or her spouse, their children, or to your still living children? In the event it goes to the Spouse – Are there any restrictions on the funds? Are you ok with those funds being commingled with a future partner if your son or daughter in law remarries?
More commonly, clients prefer that a bequest to a child that has passed then goes instead to the deceased Adult Child’s Children (the grandchildren). But how exactly? Do the funds go to the grandchildren outright or are the funds protected in a Grandchildren’s trust? If the funds go into Trust, who serves as Trustee? What can the funds be used for – education only or other uses?
It is important to discuss these points with your attorney and to have them guide you through additional considerations that may impact the planning process specific to your family dynamic.
With regard to planning and grandchildren, here is a link to a great Edward Jones article.
