If you want to cover all your bases when you are planning for the future you have to consider the age and personal proclivities of the people that you have on your inheritance list. It is not always as simple as a direct transfer of assets with no strings attached.
When it comes to adults on the list there could be people with personal problems or a history of poor money management. You can account for these personality traits by actions such as the creation of an incentive trust or spendthrift trust that includes stipulations that protect and guide the beneficiary.
For example you could require that an individual who has a history of substance abuse difficulties complete a treatment program and submit to regular testing as conditions that must be met before distributions will be made.
When it comes to minor children you have a couple of different options and there are two different levels to consider here. If you are the parent of minor children you may not have had the time to accumulate significant resources that can be specifically set aside for the children in the event of your untimely death.
This situation can be resolved by the purchase of life insurance. You could set up your will to divert the life insurance proceeds into a trust, or you could name a custodian to handle the funds for the benefit of the children under the Uniform Transfers to Minors Act.
People who are older who are likely to pass away when their grandchildren or great-grandchildren are still minors may want to set up a trust or trusts that these individuals can draw from. You could be as detailed as you would like to be with regard to how you would like the funds distributed over the course of their lives.
To find out the best way to provide for minor children given the specifics of your unique situation, get in touch with an experienced estate planning attorney to arrange for a consultation.
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