If you have a spouse, child or grandchild that loves to spend money they are considered a spendthrift. Whether you give them $50 or $5,000, they will spend it very quickly.
"Studies have shown that out of 100 children who inherit $1 million dollars, only 1 child will still have that $1 million after a 10 year period."
There is a special Trust that can be incorporated in your Will for the benefit of your loved one. It is called a Spendthrift Trust. This Trust will ensure that your loved one does not spend the lump sum of their inheritance all at once.
As the creator of the Trust, you appoint a Trustee, who is someone you trust, or even a Bank or Trust Company. The Trustee you appoint has the authority to make distributions to your spouse, child or grandchild. All of the assets of the Trust are used for their benefit but your loved one cannot access the assets on their own. This will ensure that the assets in the Trust last for an extended period of time.
Do You Need The Guidance Of An Experienced Estate Planning Attorney?
If you find yourself thinking more and more about how to preserve your assets for your family you should speak with an experienced estate planning attorney as soon as possible. Contact us online or call our Dallas office directly at 214.559.7202.