What Should You Do About Irresponsible Heirs?
You have worked hard to amass enough financial wealth to live comfortably and leave a little behind for the next generation when you pass away. The thought of leaving your hard-earned wealth to an heir that has a history of making poor financial decisions can be disheartening.
Fortunately, there are some legal tools available to you to help remedy the unique problem of irresponsible heir. An attorney can help you create a trust that will regulate the dispersal of your assets following your death.
Set the Terms
As you work to set up a trust for your heirs, you must decide what the terms of the trust will be. This requires you to think carefully about the future financial needs of your heirs.
Many people opt to have the trust make payments that represent a fixed percentage of the total trust value on a regular basis. This ensures that your heir cannot blow his or her inheritance too quickly.
You can also set up special terms that will allow for the withdrawal of a larger sum of money from the trust under special circumstances (like funding a college education or purchasing a home).
Select the Trustee
Once you have determined how you want your trust to be structured, you must select a trustee to manage the funds within the trust after your passing. Some people choose a family member or friend to act as trustee, but this may lead to bickering and feelings of anger between your heir and the trustee.
Your attorney can help you find a financial institution that offers trustee services. Using a financial institution to oversee your trust provides a neutral intermediary between your wealth and your heirs.
Educate Your Heirs
You should make it a priority to educate your heirs on the way you have structured a trust prior to your passing. Have your heirs meet with you and your estate planning attorney to discuss the terms of the trust.
Your attorney will be able to explain the legal benefits of the trust, and you will be able to explain why you have chosen to establish a trust for your heirs. It's important that your heirs are familiar with the trust so that they can easily access the inheritance they are entitled to after your death.
Trusts can be valuable estate planning tools for those who want to protect their heirs against the mishandling of an inheritance. Ask your attorney about setting up a trust for your family. Visit a site like https://www.linskylaw.com for more help.