Do Middle Class People Set Up Trust Funds?
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Q. My mother is considering setting up trust funds for her grandchildren, hoping to give them a solid head start on adulthood when the time comes. She would like to provide them with guaranteed financial security later in life and help cover the costs of important life events, such as paying for college, a wedding, and a first home.
She hasn’t decided how she would want the trusts to work yet. She mentioned that she is considering setting them up to help pay for their college educations, with the stipulation that they can access another portion of the funds only after they graduate. She is also considering hinging the gifts on certain events, tagging some for college, some for a wedding, or a portion toward the purchase of a
first home. Or, in another scenario, the grandchild will receive regular increments of money, but the trustee can distribute more for specially-tagged needs. One of the grandchildren has special needs, so she would need his trust fund to be specially tailored for his situation.
My mother is far from wealthy, and with six grandchildren, it won’t be a vast sum of money for each one. I thought only rich people set up trust funds. Do people in my mother’s situation use them for the purposes described? Thanks for your help!
Critter Corner: Protecting Our Daughter’s Inheritance If She Gets Divorced
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Our daughter got married a couple years ago, but she doesn’t seem happy. Her husband goes out a lot, drinks too much, and gambles regularly. He also spends nearly every dollar he brings in. We have a sizable inheritance to leave to our daughter and we want to protect it from him and his ways. We know if we bring the subject up with her, she may get offended and not want to talk to us. Is there a way
to protect our daughter’s inheritance from an irresponsible son-in-law?
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