What to do if I’m thinking of leaving money to a grandson that can only be used for education?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 8 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption