On the one hand it is important to analyze the form that your assets are in as you are inventorying them in preparation for eventual distribution to your heirs after your death. There are various different ways to transfer assets and the best way will vary depending on the nature of the resources in question and any exposure to the estate tax that you may have.
With the above having been stated, the transfer is a two-way street. You as the giver have to prepare the assets optimally, but you also have to consider the tendencies of the recipients.
You plan your estate in an effort to provide for those that you love after you pass away. You won’t be around for them to turn to if they need assistance and this is going to be your final act of giving. This can be a source of concern if you have a family member who is not a good money manager.
One possible way to provide for such an individual would be to make this person the beneficiary of a spendthrift trust. These trusts protect the assets from creditors and claimants which is part of the appeal.
The assets in the trust are safe from bad decision-making because the beneficiary does not control the resources. The assets are handled by a trustee who will make distributions to the beneficiary in accordance with your wishes.
A spendthrift trust can provide you with peace of mind if you have concerns about one of your heirs. If you are interested in the possibility of creating one, simply pick up the phone to arrange for a consultation with a good Somerset County estate planning lawyer.
Alan Augulis, Estate Planning Attorney
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