D ianne R eis, attorney at law. Wills, living trusts, estate planning and probate for Texas residents. Please remember that this answer is provided in the spirit of public education, not as legal advice. If you require legal advice for a particular situation, you should consult an attorney in your state.
Many people wish to make lifetime gifts to their children in order to save estate taxes.
The problem with gifts so large is that children do not have the legal capacity, or in many cases the maturity, necessary to handle so much money. To many parents, this is still too young. You would then make your gifts to the trust, and the trustee would invest the money. To conserve costs, you could even serve as trustee yourself. The trust documents would direct that the assets be distributed to the child when the child reaches age 28.