Having children is a wonderful experience, and when Arkansas residents’ children have children, they may feel overjoyed to become grandparents. Of course, new additions to families may have older individuals reconsidering their estate plans. They may want to leave assets to these younger generations, and trusts may allow them to do so effectively.
Because minor children cannot directly inherit assets and because young adults can be irresponsible with spending, many grandparents worry about the best ways to leave money to their grandkids. Fortunately, trusts can give individuals the ability to control the assets even after their passing. The assets in a trust do not have to go through probate, and the trustmaker can leave instructions regarding when and how the funds can be used.
If a person has multiple grandchildren to whom they want to leave assets, it may be wise to use a pot trust. This type of trust can benefit multiple people while having one trustee to manage the spending. It is also important to explore the differences in revocable and irrevocable trusts and what the use of either could mean for taxes and flexibility.
Leaving assets to younger generations can be helpful to those who receive them and provide a sense of relief and charity to the benefactor. Of course, Arkansas residents do not want to accidentally make the inheritance a burden for their loved ones, so finding the best way to pass on assets is important. Grandparents or other individuals who are interested in passing down assets to their young loved ones may want to discuss trusts with knowledgeable attorneys.