Burlington estate planning lawyers can help you to provide for a loved one who is not financially responsible. When you work hard to build wealth, you want to be able to use the funds that you have acquired to provide for the people you love. At the same time, you do not want all that you have worked for to be lost because your heirs or beneficiaries aren’t responsible with spending their money. Fortunately, there are legal tools that can be used to protect an inheritance that you leave for a loved one who is not financially responsible.
The Law Offices of James A. Miller, P.C. can help you to understand your options for providing an inheritance to a financially irresponsible heir. We can assist you in using the right legal tools so an inheritance will enhance quality of life for a long time to come and will not simply be squandered on irresponsible spending decisions. Give us a call to get your plans in place so you can have the peace of mind associated with knowing that you have provided an inheritance and taken steps to keep it safe.
How You Can Provide for a Financially Irresponsible Heir
When you have heirs or beneficiaries who aren’t responsible with money, there are a few risks that must be addressed. There is the risk that you will give your loved one money or property and the assets will be spent immediately. There is also the possibility that the person who you wish to leave money or property to will fall badly into debt. Creditors could come after the debtor or the debtor could be forced to declare bankruptcy, and the inheritance that you have left for him could be lost to the creditors’ claims or during bankruptcy proceedings.
You can avoid all of these undesirable outcomes by structuring an inheritance so the irresponsible heir does not actually own the assets that you are leaving. The best way to do this, in most situations, is to create a spendthrift trust. A spendthrift trust is a special type of trust that can be created with help from Burlington estate planning lawyers.
When you create the trust, the financially irresponsible heir will be named as the trust beneficiary. The trust beneficiary will not be the owner of the assets; instead, the trust will own the money and property that you wish to use to provide for the financially irresponsible heir. You will also need to name a trustee who you believe is financially responsible and who you can count on to manage the assets that you transfer to the trust.
The trustee will control the assets, which will not be accessible to the irresponsible heir and thus cannot be lost in bankruptcy or to creditors. The trustee will use the trust assets for the benefit of the financially irresponsible heir. You can provide instructions in a trust document for how trust assets are supposed to be used. This could make it possible for you to ensure that the irresponsible heir gets only a small amount of money at once. The rest of the inheritance will be safely owned by the trust and managed by the trustee so it cannot simply be lost.
Using a spendthrift trust has many significant advantages because the trust keeps the assets safe and ensures someone you trust is responsible for protecting the wealth. The irresponsible heir who you want the assets to provide for can receive a steady stream of income or can receive money at periodic intervals but, because of the way you can structure the trust, won’t be able to spend all of the money at once and be left with nothing.
Getting Help from Burlington Estate Planning Lawyers
Burlington estate planning lawyers at The Law Offices of James A. Miller, P.C. will assist you with the process of providing for a financially irresponsible heir. We can help you to create a spendthrift trust, ensure your trust document is legally valid, and help you to understand the role that the trustee will play in managing the funds for your irresponsible heirs or beneficiaries.
To find out more about spendthrift trusts and whether this type of trust is the right way for you to protect an inheritance who is left to a loved one who is bad with money, join us for a free seminar today. You can also give us a call at 866-370-3888 or contact us online to get personalized help with all of your estate planning needs. Call today to get your plans in place.
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