Different people have their own respective strengths and weaknesses and the truth is that not everyone is especially adept at handling their finances.
This can be something that enters your mind when you are engaged in inheritance planning. It is possible that you have someone on your list who could be considered to be a spendthrift. You may be concerned about the possibility of this individual spending his or her inheritance too quickly.
One course of action that you could take should you have these types of reservations would be to make this heir the beneficiary of a spendthrift trust. With these trusts the assets are protected from the creditors of the beneficiary and this is one advantage.
In addition, the assets that have been placed into the trust are handled by a trustee rather than the beneficiary. This trustee can be a financial services entity such as the trust department of a bank. In this manner you can be certain that the resources are being administered professionally.
Distributions will be made to the beneficiary by the trustee in accordance with your wishes as stated in the trust agreement. Presumably they would be judiciously spread out so that the beneficiary is provided with a financial underpinning for the long haul.
If you would like to explore the possibility of creating a spendthrift trust for the benefit of someone that you love, simply take a moment to pick up the phone to arrange for a consultation with a good South Carolina estate planning lawyer.
John Kuhn, Estate Planning Attorney
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