If you have someone on your inheritance list who is not a good money manager you may want to take specific steps to make sure that he or she does not burn through the inheritance that you leave too quickly. One of the ways that this can be done is through the creation of a spendthrift trust.
With these trusts you name a trustee who will manage the financial resources that you place into the vehicle. This trustee has total control, so the important decision-making is left out of the hands of the beneficiary.
Many people will utilize a professional entity to serve as the trustee. This will often be the trust department of a bank or a trust company. In this manner the funds will be professionally invested and administered.
Another good thing about spendthrift trusts is that they protect assets. An individual who is not a good handler of money may fall into a significant amount of debt. You may be concerned about an inheritance that you leave to an heir being absorbed by his or her creditors. You can avoid this by providing for this individual with resources placed into a spendthrift trust.
The best way to proceed when you are planning your estate is going to vary depending on the specific circumstances. If you are interested in discussing the optimal course of action with an expert, simply take a moment to pick up the phone to arrange for a consultation with a licensed Indianapolis estate planning lawyer.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.