Can My Grandchild Be My Grantor and My Trustee?
The choice to pass along wealth to grandchildren is admirable and it will greatly help them in their future endeavors. Most people know that these assets have to be designated to the grandchild in a will. In addition to stating your wishes in this document, it is important to give roles to each relative. Many grandparents will wonder if they can name their grandchild as the grantor and trustee. These terms and what they do should be discussed with Coral Springs estate plan lawyers due to their complexity. Making plans for an estate requires legal knowledge that an attorney at Bakalar & Associates can offer.
What is a Grantor and Trustee?
When passing along assets, it is important to know the different ways it can be done and who can fulfil the roles associated with doing so. Here are quick definitions of what a grantor and trustee are:
•A grantor is the person who passes along assets to someone.
•A trustee is the recipient of the assets and must administer them according to the wishes of the grantor.
Given that these roles work together, it is difficult for one person to hold both positions simultaneously. In a scenario where a grandparent wants to pass along wealth to a grandchild, they’d be the grantor and child would be the trustee.
The type of trust that is created when a grandparent gives assets to a grandchild instead of their child is a generation-skipping trust. These are usually created so that the generation that is skipped will not be responsible for estate taxes that could be applied to the trust. Coral Springs estate plan lawyers can explain in detail what this means.
At Bakalar & Associates, we prioritize our clients wishes as they make estate plans. Contact our office for a consultation so that we can answer your questions.