In a recent podcast episode, top estate planning attorney Kelly Shovelin, founder of Four Pillars Law Firm in Wilmington, NC, revealed how to avoid damaging mistakes when passing money down to the children. —
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When asked to comment, she said, "Most of my clients are looking toward leaving a legacy and inheritance behind. What they don't realize is that without the proper legal mechanisms in place, what they are really leaving behind to their loved ones is the responsibility to take proper care of that inheritance and potential liability in the future."
One way to sidestep legal complications when leaving money to children, according to Shovelin, is through setting up a 'Treasure Chest.'
When asked to elaborate, she said, "With the 'Treasure Chest,' instead of leaving the inheritance outright to your loved one where they put it in their pocket and it could be stolen from them at any time, you're leaving your inheritance locked up in a treasure chest."
"And you can choose to give the key to the 'Treasure Chest' to your loved one, if that person is trustworthy and financially responsible. If your loved one is not either of those things, but you want to make sure that an inheritance is left to them, you can give the key to someone you think is more fiscally responsible and better able to manage that money for the benefit of your loved one."
According to Shovelin, a major benefit of a 'Treasure Chest' structure can provide protection against an inheritance being misspent or decimated.
"A 'Treasure Chest' can protect your children and your inheritance in a number of circumstances. Some people may have poor spending habits, and some may be manipulated by an overbearing spouse to use the inheritance for something other than what you may have wanted. If your child gets divorced, then their inheritance could be up for grabs when splitting marital assets. But if you set up a 'Treasure Chest,' you're protecting against all of that," she added.
When asked what advice she would provide, she said, "You've worked hard your entire life to leave a legacy and inheritance to your children and your family. Don't leave it for others to potentially take advantage of and for your heirs to essentially lose. Instead, there are very tangible planning techniques such as the 'Treasure Chest' to help ensure that your hard-earned money is saved and provides some inheritance for your loved ones," she said.
Name: Kelly Shovelin
Email: Send Email
Organization: Four Pillars Law Firm
Address: 2202 Wrightsville Avenue, Suite 213 Wilmington, NC 28403
Phone: (910) 762-1577
Source URL: http://RecommendedExperts.biz
Release ID: 88990623