As a person who is making preparations for the future you probably have various different unique individuals on your inheritance list. Invariably they all have their own respective strengths and weaknesses.
Those who are in a position to leave behind large sums of money to family members have a lot to take into consideration. Not everyone is a good money manager, and there are those who have personal problems.
There also may be younger people on your inheritance list who simply have not yet reached their full potential as human beings.
If you give large lump sums directly to individuals who are not fully developed, have personal problems, or have money management difficulties you may be ultimately doing them a disservice.
Another option would be to create trusts that are specifically designed to serve the best interests of the people that will be receiving inheritances.
You don’t have to simply decide on an amount of money that the beneficiary will receive monthly and leave it at that. You can include stipulations that must be met before distributions are made, such as educational incentives or substance abuse testing and treatment.
You could also choose to create a spendthrift trust for the benefit of a loved one who does not handle money well. The trustee would administer the funds in accordance with your wishes, and the beneficiary would not have access to the principal. These resources would also be protected from creditors.
If you’re interested in learning more about trusts by all means, take a moment to contact our firm to arrange for a free consultation by clicking this link and filling in the form: Free Long Island Estate Planning Consultation