While none of us plan to die early, life sometimes throws us curveballs. An accident could take the life of parents still caring for minor children or children who have recently become emancipated. As much as you have tried to teach your child to manage money, he or she just can’t resist spending money as soon as it hits their pocket. No matter how hard you try to teach money management and to stress the importance of saving for later, some children just don’t listen. If these are your concerns, here are some options for your Estate Plan.
Create a Trust
If you want to make sure your children are cared for throughout their lives, you can put their large inheritance into a trust. You have a choice of several types of trusts, and you can structure the trusts in many different ways. For example, a trust that has on-going income from a business or other investments that are income producing will continue to grow. You could allow your child to pull all of the interest at any given time, or you could enable the trust to disburse a certain amount of money every month – much like a paycheck.
Another alternative would be to create a trust that distributes income at least annually and distributes principal and at predefined interval or ages. This allows the beneficiary to receive some money from the trust every year and to receive larger distributions at regular intervals.
Trusts are also beneficial for older adults who might become incapacitated because of an illness. When you put your assets into certain trusts, you may be able to protect those assets from creditors, including nursing homes.
When you have a large estate to pass down, there are many options to consider when working with an estate attorney to create a Will and trust. It is important to be sure that your needs and the needs of your children are addressed.
Trusts can also save your heirs time and money if you set them up correctly. Contact Grissom Law, LLC to create an estate that benefits you, even should you become incapacitated, and that benefits your children after you die. Be sure to let our attorneys know if you are worried about your children mismanaging his or her inheritance so that we can create a trust that ensures that they are comfortable, but cannot waste the funds in the first few years after they receive their inheritance.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.