If established in your will, it's called a testamentary trust . All trusts can be funded by existing money, life insurance policy proceeds or other property. For example, you can set up a trust that can be used only to fund your grandchild's education. Trusts can be complicated and you'll want plenty of qualified advice to set one up. If you think a trust will work for you, start by reading the Life Advice brochure Establishing a Trust .
Wills are an excellent way to give specific items to a grandchild.
Having your wishes in writing helps ensure that your granddaughter will receive an antique brooch or your grandson will receive that pocket watch. Wills also can be used to leave money to grandchildren. To learn more, read the Life Advice Program pamphlet Making a Will. Gifts of money are another way to help your grandchild financially. For example, cash gifts can help to start an education fund.