The eighth way a revocable living trust can enhance your estate plan is that it gives you the ability help your heirs protect their inheritances for the long term. As an estate planning attorney in Columbus, Ohio, I understand that in many situations, your heirs will be too young or lack the experience managing money to be able to manage their financial affairs alone in the case of your sudden death or incapacity. A revocable living trust drafted by our estate planning attorneys can help your estate plan because your heirs are given additional protection by the trust.
Consider if you were to leave money to your children or grandchildren by a will. The bequest would go to them in a lump sum at your death and they may or may not be at adulthood at that time. If they are not at an age to be able to wisely manage the sudden influx of money, it may lead to financial problems for them in the future. A revocable living trust gives you the ability to limit your child or grandchild’s access to his or her inheritance until a certain point – such as when they are finished with college. Of course, payments can be made from the trust to fund their education and other costs of living in the interim.
Also, there are cases such as the parents of children with special needs. If your special needs child receives government benefits, a trust can provide the critical protection needed to prevent the inheritance being taken by the government as reimbursement for public assistance.
However, it is also important to remember when creating your estate plan that it is impossible to foresee and predict the future. Sometimes, a person trying to anticipate the future financial needs of an heir will inadvertently tie up the person’s inheritance with contingencies that make it difficult for those you love to get access to their inheritances during times of need. Therefore, it is important to work with your estate planning attorney and other financial professionals to create a plan that meets your goals and ultimately provides the most benefit to your heirs.
Crumpton Law LLC and its attorneys practice estate planning law in Columbus, Ohio, and throughout the surrounding counties and cities of Franklin County, Delaware County, Union County, Madison County, Pickaway County, Fairfield County, Licking County, Dublin, Powell, Lewis Center, Worthington, Westerville, New Albany, Gahanna, Bexley, Reynoldsburg, Canal Winchester, Grove City, Hilliard and Upper Arlington.