Strategies to Help You Gain More Control Over Distribution of Estate Assets
Sometimes, simply listing the assets you want to go to your children does not provide you with enough control in your last will and testament. For example, you might be worried about your child’s spending habits, fearing that he or she will burn through the inheritance too quickly.
If this is a concern for you, below are a few strategies you can employ in your estate planning process:
- Attach conditions: You can leave assets behind in a trust that is created in your will or as a separate document that becomes effective during your lifetime, appointing another person as trustee to manage the assets. You can then more easily enforce certain conditions on the assets. You could, for example, state that your child will receive a certain amount of money upon completing a college degree, reaching a certain age or completing a substance abuse program.
- Leave money in installments: Rather than leaving a lump sum to a child who may or may not be financially responsible, consider setting up a trust and leaving behind inheritance funds in a slow trickle. For example, your child might receive one-third of his or her inheritance at age 25, another one-third at age 30 and the rest at age 35. Your chosen trustee will manage the money accordingly.
- Purchase an annuity: An annuity is a contract with an insurance agency that requires the company to make payments to your chosen beneficiary. These are typically used for retirement income, but you can direct the payments to a child if you choose to do so.
These are just a few of the options you have available to you as you plan for the years ahead. For further tips and guidance, consult an experienced Tampa estate planning attorney with BaumannKangas Estate Law.