Leaving An Estate To Grandchildren

Associate Jen Schreurs regularly advises clients in the practice areas of wills, trusts, estate and incapacity planning, estate administration, and business law.

Several grandparents are planning to leave their grandchildren their estates for various reasons. Jen discusses how this can be tricky.

Transcript:

Today we're going to be talking about grandchildren.

Many grandparents want to leave some or all of their estate to their grandchildren, whether it's due to the rising cost of post-secondary education, their children not having enough assets of their own, or some other family dynamic. Whichever the case may be, leaving money to grandchildren in a Will can be tricky. If the intent is to disinherit children and leave some or all of the estate to grandchildren, the children will have the ability to open a claim under the Wills, Estates, and Succession Act to vary the Will. Grandchildren are not afforded the same opportunity.

If any of the grandchildren are minors, their gift must be held in a properly drafted testamentary trust — until they are at least 19.

On the other hand, it may not make sense to keep a nominal gift in trust for the minor grandchild for a long period of time between limited investment opportunities and filing yearly tax returns. Each avenue has its advantages and disadvantages and should be discussed with your legal advisors. FH&P can help you navigate the legal intricacies of your legacies.