Do you take care of the Grandchildren or Children?

Many of my clients wonder if their trust should provide for their grandchildren directly or just their children. If the children are responsible then it is a good idea to leave assets to the children and let them take care of their children (your grandchildren). If the grandchildren are very young, then money will have to be left in trust. This could restrict money their parents might need, for various reasons out of their control, such as a bad economy or medical emergency. Also, with minor children, it is not clear if they will grow up to be responsible or if having a trust will distract them from school or employment. However, if a child is not responsible and will not take care of his children, then a trust for the grandchildren, where an uncle or aunt can oversee the trust, can be a great idea. This also applies to whether to leave money to nieces and nephews or brothers and sisters.