When we think about building our estate plans, many of us may look at it from the viewpoint of our own death. What will happen at that point? Who will get what? How can I predict when that might be and what plan best fits unexpected occurrences?
The truth is that estate plans are made concerning our own personal wealth, but inheritance doesn’t have to be determined by our death. “What?” may be the question that the readers of our San Fernando Valley Probate & Trust Administration Law Blog may be asking themselves. Here’s how: look at an inheritance from the viewpoint of the life of the beneficiary.
Parents often want to leave a large portion if not all of their wealth to their children, but they may worry about how to best provide for them. A trust is a great tool for parents who don’t want to just hand over a large sum of money restriction free.
For instance, you might be a parent who is entering into retirement when income from a job is nearing its end. This time of life may be very real for you, but a child who is in their 20s may not see the real value of planning for their own retirement.
A trust can set restrictions on how funds are used and when, including setting an age that protects the funds for use in a child’s retirement. A parent can protect a child from underplanning, provide a great benefit for those who have and even provide a little insurance if rumors about the Social Security fund are true.
The age at which an inheritance is distributed can be set at any point, and it doesn’t even have to be a single age. A trust can be set up to disburse income each year until a certain age has been reached or a trust can distribute a predesignated amount at 20, another at 30, another at 40 and a remainder at 50.
An attorney can help address the concerns a parent may have and build an estate plan that provides the legacy they want to leave their children.
Source: Gazettes, “ESTATE PLANNING: Age Matters When Receiving Inheritances,” Curtis Kaiser, July 22, 2013