Are you hesitant to leave your inheritance to a loved one that typically makes bad financial decisions? Without guidance on properly handling an inheritance, your heir may frivolously spend everything away. Setting up a trust with an estate planning attorney can help this situation be avoided.
How to Help Your Heirs Preserve Your Hard Earned Assets
A trust is a legal tool that enables you restrict asset distribution. When creating a trust you can set restrictions like granting an heir a fixed percentage of the assets annually. Another option is assigning a trustee and giving them authority to decide when and how much money the intended heir will receive.
Who Should be the Trustee of my Trust?
Choosing a trustee can be a difficult decision, and should be carefully thought through. You don’t want to cause unrest or arguments within your family. Other options are choosing a family friend or enlist or a financial institution that provides trustee services.
Things to Keep in Mind When Setting up a Trust
- Make sure your trustees and heirs fully understand the arrangements you’ve made.
- A trust will also your assets from debtors and creditors at the time of your death.
- With a revocable living trust, you can have full control of your trust until your passing.