What if your child or grandchild inherits $100,000? What is he or she going to do with the money? I ask this question when I give seminars and get a lot of different answers, but all the answers have one thing in common: they all involve spending the money. Even a really responsible 18-year-old might buy a house they cannot afford or spend it on things that are not a good decision in the long term. If you do not specify what age you want your beneficiaries to inherit, then they receive it at 18. Also, what if after someone inherits something from you they get divorced, have creditor problem or get sued? The money you have left to them is the vulnerable.
Your children or grandchildren need protection for their inheritance, and we don’t mean the type of protection from insurance. By setting up a trust for your beneficiary’s inheritance instead of directly bequeathing them the lump sum via a will, you can adequately protect the inheritance from a variety of unforeseen circumstances.
We can design a trust that protects even the most responsible beneficiaries from losing what you leave them to creditors, lawsuits and divorce. The trust can also dictate at what age the beneficiary receives the inheritance, thereby keeping it out of a potentially over-eager 18-year-old’s hands for a few years. Another benefit of this trust is we can make sure that the money you leave to your children makes it to your grandchildren. If your child is financially responsible, he or she can even be their own trustee.
No matter your unique situation, we can create a trust that will protect your beneficiaries to the fullest extent possible.