When my wife's grandparents passed, they put the entire inheritance into a trust fund for the grandkids' education. One of the reasons they did it that way was

When my wife's grandparents passed, they put the entire inheritance into a trust fund for the grandkids' education. One of the reasons they did it that way was to keep the tax liabilities to a minimum. (I don't know the specific relevant laws, but I know they did it for a reason.)