If you are reading this nodding your head, you are not alone. This is actually a big problem that a lot of people face when doing their estate planning. That’s why you should have a frank conversation with your lawyer in Tampa about what to do with children that can’t handle money. It’s a tricky dilemma that can really cause some big problems. But, that’s why your lawyer in Tampa is at the ready to help with any estate planning needs.
When faced with this type of problem, your lawyer in Tampa will suggest that you set up a trust. This will ensure that your children will have the assets that you bequeath to them, but with a safeguard. That safeguard is that the trust will be managed by a trustee (hopefully someone responsible that you can trust).
So, what does that look like? Well, let’s say that your son Jim is the money problem child. By setting up a living trust, you can have your assets go into his trust when you pass. Whoever you assigned to manage his trust can help him out throughout his life. They can use the money in the trust for education, healthcare, buying a house, starting a business, and so on. There are many different ways you can set up a trust to pay out or support your son.
In addition to this type of trust, you can also set up a sprinkling trust. This will allow you to cover Jim’s children if you are worried about their financial future too. You can direct the trustee to give Jim’s children equal or unequal amounts in order to protect their assets from either Jim or Jim’s spouse.
But, let’s say Jim is in major financial trouble, to the point of actual bankruptcy. Well this problem needs to be addressed. Your child could file for bankruptcy and actually lose the assets in the trust. Therefore, by giving your trustee power and discretion, they can help prevent any assets being lost in your child’s file for bankruptcy.
Find the time to speak with a lawyer about your estate planning and how your children will be covered. It’s important to have a clear and objective conversation on how to best execute your final wishes. Check out our blog for more tips and info. Contact us today at (813) 448-1042 about meeting one of our lawyers!