Estate planning is extremely profound on a number of different levels, not the least of which is the fact that passing along your legacy will be your final act of giving.
As we all know, it is not uncommon for family members to come to you for financial assistance at various points throughout their lives. The fact that you will no longer be around to help them out if necessary can be a source of concern. This is of course part of what estate planning is all about.
But what if you leave an inheritance to someone and this individual burns through it very quickly? He or she would be without any financial safety net going forward.
Many people are faced with situations such as these. One way to assuage your concerns would be to make an heir with spendthrift tendencies the beneficiary of a spendthrift trust.
One of the benefits of a spendthrift trust is that assets placed in the trust are protected from both the beneficiary’s creditors and the beneficary themselves. In addition to this, the funds in the trust are managed by a trustee of your choosing rather than the beneficiary. You could engage the services of a trust company or the trust department of a bank to assume this role and professionally administer the trust fund.
Depending on your specific needs, you have various options when you are planning your estate. To explore them in detail, don’t hesitate to pick up the phone to arrange for a consultation with a licensed Oklahoma City estate planning lawyer.
Author, President and Founding Attorney
Parman & Easterday