If you're looking for a way to ensure your grandchildren are taken care of after you're gone, a trust is a useful solution. Not only does this set them up for future financial health, but it also gives you the ability to decide how and when they obtain their inheritances. If you're interested in including a trust in your estate planning goals, follow these steps.

How to Incorporate a Grandchildren’s Trust Into Your Estate Plan

1. Evaluate Your Estate

Grandchildren's trusts operate the same way as gift trusts, in that they're irrevocable. As such, once you set the funds aside for your family during estate planning, you won't be able to take them back. While this does give the assets more time to grow, you must evaluate your estate to ensure you can get by without the money before putting it away.

2. Decide Who Will Be the Trustee

If your grandchildren are still minors, their trusts will need to be managed by a trustee until they're of age. This person will be responsible for approving distributions and making investment decisions once you've passed. To avoid any conflict or tension in the family, consider hiring a professional third party for this task, such as a banker or lawyer.

3. Set Conditions on Their Inheritance

With a grandchildren's trust, you can determine how and when your family members are allowed to recover their inheritances. For instance, you might state that they can't dip into their funds until they turn 25. You could also outline that the money can only be used for specific expenses, such as buying a house or paying for college.

If you want to set up a trust for your grandchildren, turn to Baker Law Firm LLC in Osceola, MO. With two locations in west-central Missouri, these estate planning attorneys have experience with everything from creating wills to representing clients in estate law cases. Visit their website to learn more about their practice areas, and call (417) 646-8125 to schedule a consultation.