A common goal for many people planning their estates is to protect their assets from creditors and the government. They wish to ensure their loved ones and other such beneficiaries inherit assets without the risk of someone else taking them.
Sometimes, there are also situations where those who pose risk to your assets may also be the same beneficiaries to whom you wish to leave your assets.
If a beneficiary lacks the responsibility, maturity or financial prudence to manage assets you wish to leave them, consider placing those assets in a spendthrift trust. A Sherman Oaks, CA spendthrift trusts attorney at the Law Offices of Andrew Cohen can discuss this option with you and help you establish a spendthrift trust if you decide doing so is a wise choice.
The degree to which someone may be able to responsibly manage assets or money is a critical factor to think about for when leaving assets to beneficiaries. You may wish to leave assets to certain beneficiaries who can’t be trusted to properly manage their inheritances.
Sometimes, this is simply due to a beneficiary’s age. A young child who inherits certain assets may naturally lack the maturity to effectively save, invest, or deploy those assets productively. Perhaps you would like to leave certain assets to a beneficiary with the knowledge that they won’t be permitted to directly manage their inheritance until they reach a certain age.
Or, maybe a beneficiary is old enough to theoretically manage their assets, but they have a gambling problem or a history of irresponsible financial behavior. Here, you would understandably want to be confident they won’t squander any assets you plan on leaving them.
Establishing a spendthrift trust is an option to consider in these situations. When you place assets in a spendthrift trust, you appoint a trustee to manage the Trust’s assets on behalf of the beneficiary.
This trustee may be an individual, asset management company, or attorney. You can also specify your wishes regarding how the assets in a spendthrift trust should be managed and/or distributed to ensure the trustee thoroughly understands your desires.
There are several potential benefits a spendthrift trust may offer. Examples include (but are not limited to) the following:
Meet with a Sherman Oaks spendthrift trusts attorney at the Law Offices of Andrew Cohen to learn more about why you may want to establish one. The experienced professionals at our Sherman Oaks estate planning law firm will guide you through every step of the process. Get started today by contacting us online or calling us at 661-481-0100.