There are a number of tools at the disposal of estate planners that can help create the most secure plan possible. Among these, trusts are some of the most popular and versatile documents, especially when it comes to leaving an inheritance. Parents in Oklahoma who are worried about their children potentially wasting or misusing their inheritances can use trusts to limit how inheritances are distributed.
By creating a trust, an individual can include specific parameters in which funds from the trust can be used. For instance, a beneficiary could be restricted to only using trust funds for education or might only be able to access portions of the inheritance at different ages. Ultimately, parents and grandparents should consider how the trust can both restrict access in appropriate manner while also allowing them to benefit from it.
After establishing the parameters of the trust and appropriately naming the heir as a beneficiary, a trustee must also be designated. The trustee is the individual in charge of administering trust funds at the appropriate time. A trusted person might be one possibility for the trustee, although some prefer to leave that role to a financial institution.
Most Oklahoma parents continue to worry about their children no matter what age they may be. In many cases, that concern envisions the time after the parents are gone. Using trusts to pass on an inheritance is a smart and effective option for parents who are concerned that an adult child or grandchild might misuse or squander family money.
Source: credit.com, "How Can I Keep My Kids From Wasting Their Inheritance?", Karin Price Mueller, May 13, 2016