Surely you planned something special for your partner for Valentine’s Day last week, but what about your children? They say there is nothing like a parent’s love for their children. So, why not give them a gift? Something that can benefit & protect them for years to come. After all, the month of love is not over yet.
Parents hate the thought of being unable to take care of their offspring, but as we all know, life is not infinite. Many young adults like to ‘live life’ and are not always thinking about the future, much less long-term. It can take years for a young adult to get his or her life together. For some, it’s in their late twenties, for others, their thirties. Parents know their kids better than anyone, faults and all. They know if their children lack discipline, maturity, and responsibility. If your heirs were to receive their inheritance today, can you trust that they will manage it responsibly?
Power of Knowledge
Power of Knowledge
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If the answer is no, then a spendthrift trust might be necessary, and what better time than in the month of love? Make a gift of it; over time your children will be grateful you did. MetLifes’ article entitled “What Is a Spendthrift Trust?” states, “A spendthrift trust is a type of trust that regulates a beneficiary’s access to the funds or assets held within the trust account. It can help guarantee your beneficiaries are taken care of, while simultaneously ensuring your assets are distributed according to your specific terms.” Your heirs might not be too fond at the idea of having terms and restrictions when it comes to their inheritance, but as they grow older and mature, they will understand and be happy you did. Not only are you protecting them from themselves, but also from potential creditors and ex-spouses.
Consult an experienced estate planning attorney about spendthrift trusts and what terms would be appropriate for your heirs. An age requirement, for example, can restrict your children from accessing their inheritance until they’ve reached a certain age. Or, you can allow them partial access through installments. The trustee–person distributing said funds to your children, needs to be a person who is loyal and trust-worthy, so choose wisely. Also, keep in mind, the laws for spendthrift trusts vary by state, which also means preventative methods used in this state to keep creditors or ex-spouses at bay, may not be as effective in another state.
Our Philosophy
Our Philosophy
Estate planning goes beyond money, and includes intellectual, spiritual and human wealth.