Planning ahead: Inheritance?

[InDebtInDC]

I just had this discussion with my Dad last night! He's planning on leaving the 5 grandkids $50,000 each. I asked him to have it put in trust until they are 30...

You sound like you are looking to spend the money you will inherit in a responsible manner. As our kids range in age from 7 to 13, I have no idea whether or not they will spend their inheritance wisely. I would hope they would, but my bet is only on 3 of them at this point! I think to a 25 year old, with an unexpected $50,000...hmmm...a nice car might sound like a really good idea!

I sure hope that my Dad is around in enjoy each of them hitting their 30th birthdays!

You may want your dad to designate you as the attorney for the trust in the event of his incapacitation or death. Otherwise the money will be locked until they each 30. You may want to release the money sooner or later, depending on each child's condition.


For example, if your child at 25 graduates from law school with a concentration in estate planning, there's no reason to withhold until 30.

Otherwise, if your child is a convicted felon at 30 you may want to reconsider.

Just 2 extreme examples since you yourself said you have no idea. The truth will probably be somewhere in between.