Guide Family Members
Whether you have a large estate, a small estate, or something in between, it is nice to know that your assets will serve a beneficial purpose.
When young adults receive an inheritance, it is common that most (if not all) is spent within a short period of time.
Certain situations may result in needing to guide family members from beyond the grave, with what attorneys’ call “dead hand control.” This is the process of putting stipulations, or conditions, on how a beneficiary is able to receive assets.
Sadly, it has been shown that many people with Alcohol and Other Drug Abuse (AODA) concerns that receive a lump-sum inheritance pass away shortly thereafter.
People are able to restrict their use based on available assets, however, with the receipt of a large sum of money, they have access to more funds. This can lead to quick depletion of their inheritance and can sometimes lead to an overdose.
In such a circumstance, it may be wise to direct that these persons receive their inheritance as multiple small amounts over time. Some clients direct that these persons must submit to toxicology screens prior to receipt as well.
Seeking a Career
Those with children or beneficiaries that may receive their inheritance at a young age are frequently concerned the child will put off working until the inheritance is entirely drained. Once it has been spent, they are forced to scramble to start a career so they can support themselves.
A common solution is to require that they graduate from college, a trade school, or have been working steadily for a period of time before receiving their inheritance. If you knew that by graduating school you could receive tens or hundreds of thousands of dollars, would you work hard to graduate?
When a child is due to receive a substantial inheritance, many parents are quite worried.
One possible answer to this concern is to put benchmarks in place for such individuals to receive, where they receive some money yearly, in lieu of one large distribution. Alternative solutions may be to require proof of working steadily, or that their inheritance is only used to purchase a house, for example, until they are of a later age in life.
Proper estate planning can minimize these concerns and guide your family members to do anything you would desire if you were still alive.
Using an experienced estate planning attorney’s guidance can ensure a seamless transition after your passing.