A parent’s ultimate goal is to provide their children with a better life and opportunities than they had. That goal does not end when they become adults.
Setting up a trust will allow you to care for your children and grandchildren even after your passing.
One concern when leaving someone an inheritance is will that person use the money for something good? Or will the inherited money cause more harm than good?
You spent a lifetime building your estate, it is important that you protect it and that it is not wasted through elicit uses or financial irresponsibility.
For those that may have issues with addiction or financial irresponsibility, a spendthrift provision can be incredibly beneficial in ensuring that the inheritance left for them is used for their benefit not for their pitfalls.
A great benefit of a spendthrift provision is that it prevents a third party creditor from being able to attach, garnish, execute on or otherwise reach an individual’s inheritance, before receipt by the beneficiary. In short, a spendthrift provision protects your money from being wasted after you pass.
There are a couple different reasons to include a spendthrift provision in your trust:
- The intended beneficiary has a substance or gambling addiction,
- The intended beneficiary has a great deal of debt and/or is financially irresponsible
- The intended beneficiary is at an age that they should not receive a large sum of money at one time (not yet financially sophisticated)
If you, a friend, family member or loved one would like to create or update your Estate Plan, and need the advice and counsel of an experienced attorney, please call OWENS & PERKINS at 480.630.2464 to schedule your free 30 minute consultation.