Byline: Jacob Frizado & Katie Hicks
Who inherits your assets when you pass? What do they inherit?
What happens if your assets go into the hands of a complicated beneficiary that would be adversely affected by the receipt of a large lump sum of money or property, i.e., someone with a history of substance abuse, gambling addiction, poor financial decisions, or even someone receiving government benefits?
Do you have a complicated beneficiary right now? If so, you may benefit from a Trust.
Most folks view Trusts as an Estate Planning tool for the ultra-wealthy and, while having complicated assets is a great reason to include a Trust in your Estate Plan, you also have to consider complicated beneficiaries. In the case of a complicated beneficiary, a Trust can allow for their inheritance to be held “safe” for them; able to be used for their benefit, as needed, rather than being given to them in one lump sum right away, thereby preventing its misuse or abuse.
Identifying complicated beneficiaries is critical to determining what type of Estate Plan is best for you. Obviously, you can’t predict issues that may arise in the future, but having a Trust can even protect against what you can’t see yet – future issues, creditors, hardships or complications.
While we recommend that EVERYONE have something in writing, we see this “Worst Case Scenario” more often than we would like. While most clients prefer the idea of a “simple” Will, we know that a Will cannot protect their complicated beneficiaries and assets like a Trust can. If you have any questions or concerns about your current situation, you should reach out to a PSE Estate Planning Attorney for guidance and advice at pselaw.com, or call 937.223.1130.
