There are various steps that must be taken when you are crafting your legacy. For one, you need to inventory your assets in an effort to gain an understanding of exactly what it is that you have to give. You then must situate your assets in the optimal manner to protect them and mitigate asset erosion.
In addition to preparing assets for distribution, you also have to consider the unique personalities of the people who are on your inheritance list. If you pass away after living a long life, some of the people on that list are probably going to be mature and established in their own right. You may have no qualms about leaving individuals such as these lump sum inheritances with no strings attached.
But on the other hand, not everyone is good at managing financial resources. There could be someone who is in line for an inheritance that could be considered a spendthrift. You may have concerns about how this individual will handle his or her inheritance.
As a response, you could make this person the beneficiary of a spendthrift trust. When you do this, the beneficiary does not handle the funds directly. This task is assigned to the trustee that you appoint. Many people will utilize a trust company, or the trust department of a bank, to be certain that the funds are professionally administered.
The trustee will issue distributions to the beneficiary in accordance with your wishes. In addition, the assets placed in the trust are protected from creditors of the beneficiary.
If you are interested in the possibility of creating a spendthrift trust, simply take a moment to pick up the phone to arrange for a consultation with an experienced and professional Los Gatos, CA estate planning attorney.
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