Joint last to die universal life. Grandparent is Female age 65 Non-smoker and grandchild is Male age 18 Non-smoker. Premiums of $12,000 per year for 20 years are paid into the policy. Interest assumed at 6%. (values are not guaranteed)
You’re looking to transfer wealth to your grandchildren. You want to control the policy and the funding during your lifetime. Upon your passing you want to provide your grandchildren with funds that they can use for housing, education, or whatever they choose. You can also gift them a fully paid up life insurance policy at that time as well. And, you want to do all of this in a tax efficient fashion. A properly designed life insurance policy can achieve all of this.
During your lifetime you deposit funds into an insurance policy. Those funds grow in a tax sheltered environment. Upon your passing, the ownership of the funds transfer to your grandchild, allowing them to access the funds at their tax rate instead of yours.