In a recent interview, Michele Ungvarsky, founding partner at E-Law in Las Cruces, NM, revealed how to attach rules when you leave money for children. —
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When asked for a comment, she said, "Many middle-class parents are concerned about how their adult children will spend the inheritance they will leave behind. Here are some measures to consider if you're concerned that your inheritance will be spent irresponsibly."
Appointing a trustee is one way to control the financial decisions made by adult children over an inheritance.
“You can put your inheritance in a trust and then get someone who will act as trustee to make financial decisions on behalf of your child who - in this case - would be the beneficiary.”
Ungvarsky continued by saying, “Picking a trustee to preside over your trust might be tricky as the trustee will have the decision-making power to provide your child with access to the inheritance. You might not want to ask a friend or family member to hold this much responsibility, and you do have the option to hire a professional trustee.”
Following this, an easy way to ensure that the money is not spent all at once is by establishing a trust with installments, according to Ungvarsky.
“Setting up a trust with periodic installments will help to control the flow of money. And the great thing is that you can put conditions on when the installments should be paid - so it could be yearly payments or divvied up portions of your money paid out every five years for 15 years, for instance,” she said.
Further to this point, Ungvarsky alluded to the fact that incentive trusts can be put in place to reward good behavior and disincentivize bad behavior.
When asked to elaborate, she said, “With an incentive trust, you can arrange for a payment to be made for something such as attending university or getting a job.”
One way to ensure that an adult child doesn’t have any access to the inheritance is by disinheriting them.
“You do have the option of not leaving anything to an adult child. Should you decide to go this route, the best way is to explicitly state in the will that you don’t want to leave them anything. The only details you need to provide the name of the child you don’t want to leave your inheritance to and that it’s intentional. In other words, you’re not required to state your reasoning.”
Name: Michele Ungvarsky
Email: Send Email
Organization: E-Law, PC
Address: 1340 Picacho Hills Dr, Las Cruces, NM 88007, USA
Source URL: http://RecommendedExperts.biz
Release ID: 88966623