There are some pleasant problems that can present themselves as you are engaged in the process of estate planning. You may have to look for creative solutions as you are arranging for asset transfers with the well-being of your heirs in mind.
Individuals who are in a position to leave behind significant sums of money to their loved ones are going to be people who understand how to handle financial resources effectively. This does not necessarily mean that all of your heirs will share this propensity.
In truth it is not always a good idea to leave direct inheritances to people that you care about. It can be a better idea to provide the ability for the heir in question to receive measured monetary distributions throughout his or her life rather than allowing access to the principal all at once.
In other words, it may be better to enable the purchase of a sensible car every five years than the single purchase of a Bentley.
Individuals who are not used to being in possession of relatively large sums of money may not recognize the fact that the operative word here is “relatively.” You will no longer be around to provide assistance if and when it becomes necessary, so this financial underpinning that you leave behind must last for as long as possible.
Certain individuals can get the idea that they have suddenly become “rich” and the next thing they know they find themselves with some expensive memories and very little money.
Estate planning instruments such as incentive trusts and spendthrift trusts can be the solution for people who want to make sure that their heirs have resources for the long haul. To find out more about them, take a moment to set up an appointment to speak with a good Central New Jersey inheritance planning lawyer.