Many clients want to leave something for their grandchildren and there are a multitude of options and factors to consider. The most common way clients leave money for their grandchildren is to leave a specific dollar amount, known as a specific gift, at their death to a grandchild. If the grandchild is a minor or not fiscally responsible, the next option is to leave the specific gift in trust for the grandchild allowing you to control the distribution.
A common concern that many clients have when leaving specific gifts is that the gifts will deplete their estate since they are distributed first, and their children or other beneficiaries may not receive as much as they had intended. One way to solve this problem is to include grandchildren in the residual distribution. You can give larger percentages to your children and smaller percentages to your grandchildren. That way everyone receives something, and you are still able to leave your assets in trust.