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If you are worried that your children will blow your inheritance in one go, then future-proofing could be a solution, Dennis Toman, founder of The Elderlaw Firm in Greensboro, NC, said this week.For more information please visit https://www.elderlawfirm.com
He made the comments in an interview when questioned on the best options to adopt to ensure cash assets are not simply squandered when you die.
Putting down rules, appointing a trustee and creating trusts will help guard against bad future financial management.
Toman commented: "You could establish a trust that releases money in pre-agreed instalments. Creating such a trust would control the outflow of funds over time.”
"You dictate when instalments should be paid, whether they are monthly, quarterly, annually, or every five years over a period of time. Equally, you could also state what the money should be spent on rather than it being frittered away quickly."
Appointing a trustee, ideally, someone in a professional position rather than family and friends, would shift decision-making power out of the family and solve any awkward issues.
He added: "You can put your inheritance in a trust and appoint someone who would act as a trustee to make financial decisions on behalf of your child who would be the beneficiary.”
"However, having a trustee as a family member to preside over your trust might be tricky as the trustee will have the decision-making power to provide your child with access to their inheritance. This may well be too much responsibility, so a professional trustee is a preferred option."
Creating an incentive trust would be geared towards rewarding good behavior. "You could arrange payment to be made for something towards attending college, getting a job or staying off of drugs or alcohol."
The nuclear option is to cut children out of an inheritance altogether. He disclosed: "Disinheriting them means you are stating explicitly in your will you are not leaving anything to them. Provide the child's name you don't want to leave your inheritance to and that it's intentional. In other words, you're not required to state your reasoning."
source: http://RecommendedExperts.biz
Contact Info:
Name: Dennis Toman
Email: Send Email
Organization: The Elderlaw Firm
Address: 403 W Fisher Ave, Greensboro, NC 27401
Phone: 336-378-1122
Website: https://www.elderlawfirm.com
Source URL: http://RecommendedExperts.biz
Release ID: 89042544
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