Making a trust is a great way to take more control over the money you leave to your heirs. You may not be around to see how they spend it, but you can influence that spending.
For instance, maybe you want to use an educational trust. People often use these to help their grandchildren pay for college and they may even help multiple generations. With students racking up a historic amount of student debt, this is one of the best ways to help your heirs.
However, you do want to consider the fact that circumstances change. You may want to put some clauses in your trust to show other reasons that your heirs can access the money other than purely for education. If you don’t, it could be too limiting — especially if you have an heir who is unable to finish school due to a disability or some other reason.
For instance, maybe your grandchild will be attending college, using the trust to support themselves so that they can essentially go for free. However, with a year left, they find out that one of their parents (your child) has a terminal illness. They want to take a break from college and move home to take care of them.
Do you still want them to be able to use the trust? Maybe they need to make ends meet for the next year while taking care of their sick parent. If the trust can only go toward education, it doesn’t help. If you really wish it would, you need to set it up that way in advance.
Planning for the future really means considering things from all angles. Be sure you know what steps you should take when creating your estate plans, including how to draft a trust to account for all possible needs and options.