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One tactic to keep someone from getting an inheritance as soon as you pass away is to put it in a trust. When you die, the money is then put in the trust, and the trustee has the job of giving the money to that individual at a certain point. This is often done when an heir is a minor and you don’t want them to get the money until they become an adult.
One thing to consider, though, is that even an adult may be too young to get this money at the exact time that you pass away. Maybe you have an heir who is 21 years old and is a college student. You’re planning to leave them $200,000. You’re worried that giving someone that much money at such a young age is just a recipe for disaster, as they may waste the money on frivolous purchases, drop out of college or do other things that you wouldn’t really approve of. You want the money to be used by someone who is more mature and making rational decisions, such as raising a family or buying a home.
There is no legal stipulation that a person has to inherit money as soon as they become a legal adult. You can pick a different age if you’d like. For instance, you could state that they get half of the money when they turn 25 and the other half of the money when they turn 35. You can then put that money in the trust, and it is held for them until those ages, even if they’re an adult the entire time. They may not be thrilled about this, having wanted the money immediately, but you have the legal ability to do what you would like with your assets.
This is just one thing to consider when you’re trying to set up the perfect estate plan, so make sure you know what steps to take. to protect your family’s future.