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A gift with strings

Could we leave a block of stock to our children (over 18) but have dividends reinvested until they reach age 50? Could this stock he changed from time to time if necessary, and after our death could a bank or other entity change stock until children reach 50? -- L. L.

Since you presumably do not trust your children to use the resources you expect to leave them responsibly, you should probably consider a trust. You endow the trust with whatever level of assets you wish and incur a gift tax liability equivalent to an estate tax liability. The trust could be managed by you during your lifetime and by a bank trust department or other trustee after your death until your children reach 50 -- or some other event happens. This type of trust is not unusual, although your reasons and possible restrictions appear unique. Ask your attorney to prepare a trust and switch title to your assets to the trust, and the deed is done.

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