Estate planning is a necessary part of life. You must make preparations for what will happen to your assets after death. This can be a daunting task, as you may want to leave an inheritance to more than one person. You may also worry about how those you leave behind will spend the money that you give them. To put your mind at ease about these things, a discretionary trust might be what you have been looking for. Consider these 3 things.
What is a Discretionary Trust?
In essence, a discretionary trust allows you to bequeath your assets to a family member after your passing with some strings attached. While this may sound unnecessary to some, it can have many benefits. For example, you may be concerned that your children or grandchildren will squander their inheritance in their younger years and regret it later. You can set up a trust that is inaccessible to that person except for specific things like medical expenses or education. The money is theirs for the having, but certain criteria must be met to earn it.
Who Needs it?
People who want to protect the financial future of their loved ones might be interested in a discretionary trust. You will feel good about leaving a substantial amount of money to your family members, but you also know that it will be used wisely. You are not doing this for selfish or controlling reasons; instead, you are protecting your children and grandchildren from a life of financial stress. This is a way that you can continue to look after them even after you are gone. They will thank you later!
How Does One Set Up This Type of Trust?
An estate planning lawyer can help you set up this type of trust. When you go for this type of appointment, you want to have documentation of all assets that you own. An attorney with experience in this area can help you draft a trust that will protect the financial future of your descendants. By setting up this type of trust, you can potentially provide financial security for many generations of your family.
Estate planning no longer has to be a daunting task. In fact, it can be something that provides you with peace of mind in your final years. Consider these points about discretionary trusts, and research to find out if it is the right option for you and your family. If you would like to speak with a Folsom estate planning lawyer, then a lawyer from Yee Law Group, PC can be of assistance to you with your trust.