If an heir has a history of poor financial choices, an estate holder may be reluctant to leave them an inheritance. Most people have heard of someone who spent their inheritance too quickly due to a lack of guidance. An Estate Planning Lawyer in Nassau County NY will help clients find solutions, such as trusts. Read on for more details.
What is a Trust, and What Does It Do?
In the legal sense, a trust is a tool that allows a person to put limits on how their assets are distributed after death. For instance, one may set up conditions that grant their loved ones a predetermined percentage each year. Another method is to give the trustee the power to decide when and how heirs will receive their inheritances. An estate planning lawyer can help clients choose the right approach for their situation.
Choosing a Trustee
As with other legal matters, it’s important to be cautious when choosing a trustee. For some people, choosing a brother or sister may lead to fighting among other family members. Instead, such a client could choose a family friend or get help from a lawyer or an institution providing trustee services.
Things to Remember When Creating a Trust
Clients should consider a few things when creating a trust, including those listed below.
- Be sure the inheritance and the intent are a match. For example, is there a special needs child in the family? Is there a grandchild who needs money for college?
- Teach heirs how to manage money responsibly. Consider inviting the trustee, the heirs, and an Estate Planning Lawyer in Nassau County NY to all financial appointments.
- Create limits. An estate planning lawyer will help a client set up a spendthrift provision if necessary.
An estate planning lawyer will show a client how state and federal tax laws may apply to their estate and help them choose the right kind of trust for their needs. Depending on the trust type, an attorney may be able to help the client protect their assets from creditors or separate them from a special needs person’s income so that person may qualify for benefits. Click Here for more details or call today to schedule a consultation.
