Worried about leaving money to an heir that couldn't handle it? Someone with drug, alcohol, or gambling problems? Here are two ways to deal with those heirs in your Estate Plan.
Some of my clients decide that their heir is beyond help, and they simply don't leave them anything. This is the most extreme option. However, depending upon the circumstances it is sometime the best solution.
This options saves other heirs or family members from having to manage an inheritance for the problem heir.
A Spendthrift Trust is a trust that gives the problem heir ZERO control over their inheritance. They are still the beneficiary of the trust, just without any control.
Instead, another person is made trustee and given complete authority and control over how the inheritance is distributed.
Creating a Spendthrift Trust for a problem heir makes sure that their inheritance is there to help them, but not there to support their additions.
For a Spendthrift Trust to work, you must have a reliable, and willing, trustee.
These are just two options available. Depending upon the circumstance one of these options might work great, or one of several other options might be better.
If you'd like to learn more about leaving an inheritance to a problem heir or have any other Estate Planning questions, please schedule a complimentary Estate Planning Strategy Session.
I'm a reformed litigator that now helps individuals, families and businesses prevent problems and stop worry. Contact me to learn more about my solutions that may be right for you.
Planning With Real Property In Many States07 Jun, 2019
What Is A Power Of Appointment?29 May, 2019
When Does A Will Expire?18 May, 2019
Can I Draft My Own Estate Plan?16 May, 2019
Can Your Child’s Creditors Garnish Your Bank Account?30 Apr, 2019
When Is The Right Time For An Estate Plan?29 Apr, 2019
Fair Doesn’t Mean Equal25 Apr, 2019
Does Your Will Disinherit Your Youngest Child?