FAQ: Can I Leave Money Directly to My Grandchildren in Texas?
Short Answer: Yes. You can design your estate plan so your money goes exactly where you want it to go—with no interference from other heirs. While it’s a bit unusual to leave money directly to young grandchildren, it can absolutely be done with the help of an experienced Texas estate planning attorney.
Why You Might Want to Include Your Grandchildren in Your Estate Plan
Every family is different, and your estate plan should reflect that. You might wish to leave money directly to your grandchildren if:
1. You Raised Your Grandchildren
If you served as their guardian or acted as their primary caregiver, you can ensure they inherit as if they were your own children. Without a will, Texas intestate laws prioritize children before grandchildren, so a custom estate plan is essential.
2. Your Children Have Their Own Wealth
If your children are financially independent, you may want to help your grandchildren start off strong—especially if they’re pursuing education or building careers.
3. You Disagree with How Your Child Manages Money
You may wish to bypass your children if they’re unwilling to help your grandchildren with education, debt, or investments.
4. There’s a Divorce or Family Dispute
If you’re concerned an ex-spouse or family conflict could interfere with your legacy, leaving money directly to grandchildren—especially through a trust—can offer protection.
Options for Leaving Money to Grandchildren in Texas
An experienced Dallas estate planning attorney can help you choose the right structure for your goals, balancing flexibility, control, and tax efficiency. Common options include:
1. Direct Inheritance
You can name your grandchildren in your will or estate plan. However, minors cannot inherit directly, and young adults may lack financial maturity. Direct gifts may also be exposed to creditors or divorce settlements.
2. Trusts
A trust allows you to control when and how your grandchildren receive assets. You can set age milestones, education goals, or other conditions. While trusts require legal setup and maintenance, they offer the greatest protection and flexibility.
3. Gift Trusts
Gift trusts let you transfer assets now but maintain some control over how funds are distributed. They can cover specific milestones such as college, marriage, or home purchase. These trusts require careful drafting and may have tax considerations.
4. Education Trusts
An education trust ensures funds are used exclusively for schooling—tuition, books, or related expenses. This option is perfect if your goal is to invest in your grandchildren’s future education but not ideal for broader financial goals.
5. Uniform Transfers to Minors Act (UTMA) Account
A UTMA account lets you transfer assets to a minor, with an adult custodian managing the funds until the child turns 18 or 21. However, once the child reaches that age, they have full control and can use the money however they choose.
What Happens If You Die Without a Will in Texas?
Under Texas intestate succession laws, your estate typically passes first to your children. Grandchildren inherit only if their parent (your child) has already passed away. Creating a valid will or trust is the only way to ensure your grandchildren receive what you intend.
Speak With an Experienced Estate Planning Lawyer in Dallas
If you’re considering leaving money to your grandchildren, contact The Ashmore Law Firm for personalized guidance.
📞 Call us at 214.559.7202 or contact us online to schedule your consultation. We help families throughout the Dallas area design estate plans that honor their wishes and protect their loved ones’ futures.
