What to do if I’m thinking of leaving money to a grandson that can only be used for education?
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What to do if I’m thinking of leaving money to a grandson that can only be used for education?
I have been burned before. His father and I agreed to put money in an account (both our names) for education only. On the day he turned 18 he went to the bank and convinced them to give him all the money and he went out and blew it. How can avoid this from happening with my grandson?
Asked on January 9, 2013 under Estate Planning, Missouri
Answers:
Catherine Blackburn / Blackburn Law Firm
Answered 11 years ago | Contributor
It sounds like your grandson is a persuasive individual. You can prepare a trust for your grandson. You can make it revocable - so that you can change it - or irrevocable - and no one can change it. A lawyer can prepare the trust so that your grandson has no access to the principal (money) unless the Trustee gives it to him. You can write the trust so that the Trustee can give money to your grandson only for education.
I strongly recommend that you have a lawyer draft this document. There are many choices in drafting, and it is difficult for lay people to understand the consequences of each choice. There are also circumstances that should be considered (such as what to do if your grandson decides not to pursue an education), and lawyers are accustomed to making provisions for these circumstances.
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