Nearly all families in America have that one relative who cannot seem to control the way they spend. They often spend large sums of money on questionable investments, frivolous luxury items or extravagant gifts for friends. When this is your adult child or another close relative, it can cause a lot of concern as you begin the estate planning process.
Many parents and grandparents in Kentucky like knowing they have something of value to leave their loved ones when they’re gone. Unfortunately, they also know when one or more of their heirs lacks the restraint required to spend wisely.
A spendthrift trust could be the solution you need
A top priority for many people involves finding some way to help these relatives benefit from their inheritances on a long-term basis. A spendthrift trust can do just that by limiting your loved one’s access to their inheritance.
Other benefits of setting up a spendthrift trust for your loved ones include:
- Protecting the inheritance from creditors
- Allowing you to choose when and how much an heir receives
- Allowing you to remain in control of assets after your death
- Protecting some assets and property from estate taxes
With a spendthrift trust in place, heirs don’t have full, unrestricted access to their inheritances. In turn, this means they cannot spend as carelessly as they may have in the past.
If you believe a spendthrift trust will add value to your estate plan, you will benefit from obtaining experienced legal guidance. Doing so can increase your knowledge of Kentucky estate planning laws and help you discover other ways to preserve your assets for future generations of your family.