Legal Question in Wills and Trusts in New York

Re: child beneficiary

I agree with John and I think a Living Trust (one created by you during your lifetime) is the better choice, naming the trust as the beneficiary (I belive this can be done). The trust language appoints who handles the money and how it is to be used while the beneficiary is a minor and when he will ultimately get it (which may in several distributions over time, not all at once unless this is what you want). You can also name alternate trustees if needed, so the mother never has a say about how the money is used. If you need more information and/or assistance in drafting the document, contact me directly.

Re: child beneficiary

Property given to minors must be manged by their lawful guardian. I would assume that the child's mother is his guardian.

To avoid this result, you may set up a trust for the benefit of your grandson in one of two ways:

(1) create a trust while you are living and designate the trust as your beneficiary of the TDA (check to see if this is permissible). You can set up the trust for the benefit of your grandson.

(2) you may designate your estate as your TDA beneficiary (check to see if this is permissible). You must then have a Will which creates a trust upon your death. The property passing from the TDA into your estate can then be transferred into the trust by your Will when you die.

In your trust documents, you may outline the identity, powers and responsibilities of your trustee(s). Needless to say, you will designate someone who you can trust to carry out your wishes.