Leaving your wealth and assets to your children after you pass might seem like the most logical choice, but this is not always a straightforward decision. Although all parents try to raise their children as best they can, some develop worrying habits that may be concerning as you write your will in New Jersey. Perhaps one or more of your children has a gambling addiction. Maybe they have struggled with drugs in the past. Other children might simply be terrible with money.
So how do you make sure that your hard-earned fortune is not wasted or squandered the minute it passes into your childrens’ hands? This is one of the most important questions many people ask as they begin the estate planning process. Fortunately, there are many options available to you to address this potential issue. A qualified estate planning attorney can help you plan for the future, and they can explain a few beneficial strategies.
Establish a Trust
If you are concerned about how your assets and wealth might be used after you pass, one of the best options is to establish a trust. When you establish a trust, you can put an independent, impartial person in charge of your assets. This is known as a trustee. Trustees can control all of the assets in your trust, and they can make sure that this money is not being misused.
While you will still need to write a will in order to handle various other elements of the estate planning process, a trust is a beneficial alternative in many instances. You can even put your assets into a trust before you pass away and continue using those assets until that day comes. If you are looking for Assets Protection attorney in New Jersey, Giro Law could be your best choice.
When establishing a trust, it is important to choose a trustee that you have a great amount of confidence in. This should be someone who you have known for many years. If you have children that you think may misuse or squander your wealth, this person can act in a responsible manner and allow the transfer of assets only when they deem it to be appropriate.
For example, you might tell your trustee that you only want certain children to receive your assets after they have completed a drug rehabilitation program. Trustees may need to conduct their own investigations in order to follow through with your wishes. Because of this, being a trustee requires incredible moral fortitude and dedication. Choose your trustee wisely.
Pay Out in Installments
Another option is to set up a trust that pays your beneficiaries in installments. By ensuring that certain people only receive a “trickle” of money over a long period of time, you can ensure that they will never waste it all in a short period of time on irresponsible purchases.
This is a solid option, because you can still make sure that your loved ones are cared for as they receive a constant source of financial support. It is also less complex, and its “automatic” procedure does not require as much oversight from a trustee.
Get Legal Help
If you need legal assistance throughout the process of estate planning, reach out to Giro, LLP, Attorneys at Law today.