Many individuals who are in the process of putting together or updating their estate plan have worked hard for many decades and hope to be able to pass on assets to grandchildren or their own children. Unfortunately, however, some common missteps in this process could lead to your money being squandered.
If you leave your money outright to heirs within a will, there are no controls on how the money is handled. This can be a major mistake. Using a trust can help against numerous future potential catastrophes such as family members looking for a personal loan, bailouts for a business, financial challenges and bankruptcies.
They can also provide for this individual and special needs of each one of your beneficiaries. Lots of trusts make multiple payouts over a long period of time. The primary goal of this is to space out distribution that prevents the beneficiary from landing a financial hole from spending everything too quickly. It can be challenging for individuals to receive a large lump sum of money particularly if their primary method of receiving money has been getting a paycheck every two weeks
Many people will overestimate how long that lump sum of money can be stretched and therefore find themselves in a financial bind just a couple of years after you have passed on the asset. Using a trust allows you to prevent the dangers of a spendthrift child and also can help to guard the money from being received by another party. Consulting with an estate planning attorney in Ohio is strongly recommended if you intend to use trusts or other tools to pass on assets.