A grandfather would like to give his three little grandchildren an investment for Christmas.

When they grow up, they should use it to finance a property or use the money for their own retirement provision.

He wants to expressly exclude “luxury consumption”.

A gift under such a condition is possible, as it were, an educational passing on of assets.

The parents could set up securities accounts in the names of the children and the grandfather could draw up a donation agreement in which he stated the reservation of the donation.

Since the grandchildren are younger than 7 years old, their parents must declare that they have accepted the gift.

If the grandchildren later violate the condition, this would be a reason for recovery of the donation.

Daniel Mohr

Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.

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However, the donation agreement becomes ineffective with the death of the grandfather. So he cannot determine what happens to his gifts after his death. If he wants to ensure that, he must keep the capital investment in his name during his lifetime. Then he can give the money to his grandchildren if they want to use it in his favor. If he dies before that, he should have appointed an executor who has the money for the grandchildren and who only releases it when the use in the sense of the grandfather's will is guaranteed. Such an executor could be a lawyer or tax advisor. That costs money. If he instead appoints one parent as executor, there is a risk that they will work together collusively, warns specialist lawyer Jan Bittler,In other words, disregard the grandfather's instructions by mutual agreement. If you don't want it to be so legally complicated, you have to be content with a simple wish to your grandchildren: Do something useful with the money, I trust you.