Menu ${site.data.firmName}${SEMFirmNameAlt}${site.data.firmName}${SEMFirmNameAlt}
Practice Areas
Let's Get Started!

A trust could help your child with a grandparent's money

A grandparent leaves money to one of your children. The child is only 10, so you're named as a guardian. Essentially, the money is under your control until the child is no longer a minor.

However, you're worried about what could happen down the line. Is your child the type of person who tends to blow through money quickly? Though the child is technically an adult at 18, are you concerned that handing the full sum to an 18-year-old means it won't be spent wisely?

A lot of parents deal with this. Perhaps your child is in line to get $50,000. You know how helpful that could be with rising tuition costs, when your child wants to buy a home or if he or she wants to start a business. However, all your child sees is the chance for a carefree summer vacation in Europe or a new sports car.

You could also be worried about your child's friends. Many college students have very little money, work part time, and get by from one paycheck to the next. Will your child's friends try to get him or her to pay for everything if they find out there is $50,000 in the bank?

The way you address this depends on your situation and your child, but one option may be setting up a trust for the money. This can help to limit the ways that the money can be used, meaning that it won't be wasted and will be spent in the way that your own parents hoped. Be sure that you understand all of the options a trust provides and what legal steps are needed to set it up.

Source: LearnVest, "What Do You Do When Your Kid Inherits Money?," Eileen Gunn, accessed June 20, 2017

No Comments

Leave a comment
Comment Information

Serving businesses and individuals throughout Massachusetts

Waltham Office
375 Totten Pond Road
Suite 200
Waltham, MA 02451

Toll Free: 888-759-5109
Waltham Law Office Map

Braintree Office
25 Braintree Hill Office Park
Suite 406
Braintree, MA 02184

Toll Free: 888-759-5109
Phone: 617-523-1555
Braintree Law Office Map

Cranston Office
200 Midway Road
Suite 159
Cranston, RI 02920

Toll Free: 888-759-5109
Cranston Law Office Map

Hyannis Office
1330 Phinney’s Lane
Hyannis, MA 02601

Toll Free: 888-759-5109
Hyannis Law Office Map

Norwood Office
520 Providence Highway
Suite 10
Norwood, MA 02062

Toll Free: 888-759-5109
Norwood Law Office Map

Westborough Office
276 Turnpike Road
Suite 228
Westborough, MA 01581

Westborough Law Office Map

Woburn Office
444 Washington Street
Suite 203
Woburn, MA 01801

Woburn Law Office Map