Not every parent or grandparent is in the position to leave a hefty chunk of change to their offspring. But those who are so fortunate may have concerns about how the sudden windfall may negatively impact their loved ones.
That’s an understandable concern. While your time here will have passed by the time that your heirs access any funds left to them, you certainly don’t want to contribute to their downfall in any way. But the good news is that there is a way to prevent such problems from occurring.
Why should I draft and fund a spendthrift trust?
There are many reasons why funding a spendthrift trust could solve many of your estate planning problems. It’s common for heirs, especially those who are younger, to be inexperienced in managing large sums of money. In their naivete, they could be susceptible to the manipulations of those with the ill intentions of separating them from their money.
Others may struggle with their sobriety, and having access to large and unrestricted sums of money could lead to them overindulging — or even fatally overdosing.
Then, too, the problem might not even lie with the heirs themselves plowing through a vast sum of money. Perhaps they are married to spouses who never met a sale they didn’t plunder. Or they may be engaged in professions like the law or medicine that make them particularly vulnerable to lawsuits that could easily deplete their inheritances in one fell swoop.
How will my heirs feel about this?
It’s true that your heir(s) may feel that this is an attempt to control them and their lives from beyond the grave. However, you know or should know your heirs and their weaknesses and strengths of character well. That you are trying to save them from harsh financial mistakes or their own baser instincts can be countered as an act of love.
Address your estate planning concerns now
Learning more about the options you have to resolve any estate planning dilemmas you may face is a prudent move. Since Louisiana is unique among the 50 states with its forced heirship laws, it’s a good idea to discuss your unique situation with a Baton Rouge estate planning attorney.
This can provide you with the peace of mind that you need to face the future, knowing that your beloved heirs will be taken care of once you are gone.