Protecting Irresponsible Loved Ones From Your Will In Arizona
Loving our family members doesn’t mean turning a blind eye to their faults, especially if those faults could have long-term adverse consequences. Some people just need to be protected from themselves, from their own bad habits or lack of judgment. Fortunately, there are estate planning tools that can help you provide long-term benefits to any irresponsible heirs in your family tree.
It’s possible to protect your heirs from their own worst instincts – at least the ones that relate to your estate. When you consult with your estate planning attorney, be honest about any concerns you have about irresponsible heirs. Complete honesty empowers your attorney to make ‘big picture’ suggestions about your estate plans, including:
Write A Will. One purpose of a Will is to provide a way to transfer your property to your heirs. Your Will can include language that protects your heirs. For example, you can set up a trust that protects and preserves your property for future generations or that distributes the property in increments. Instead of your heir receiving a large lump sum, he or she will get money in smaller, more manageable amounts.
Transfer Assets To A Trust. As noted above, you may want to include a trust in your estate plans. However, there are different types of trust that have very different consequences. Make sure you ask your lawyer about trusts.
Add Spendthrift Provisions. Spendthrift trusts or spendthrift language in Wills can protect assets from creditors or from an heir’s unwise financial decisions.
Beneficiary Designations.Retirement fund, bank accounts, insurance policies, and investment funds allow the owners to designate who will receive funds in the accounts after the owner’s death. If you’re concerned about the effect this might have on a beneficiary, consider creating a trust and naming the trust as beneficiary. When the owner passes away, the funds will transfer directly to the trust, not to a possibly fiscally irresponsible beneficiary.
Some Final Thoughts
Handing $100,000 to someone with a gambling problem or drug addiction could lead to big trouble. Spreading it out through smaller payments might help the beneficiary in the long run. Does it mean your heir will never do anything financially irresponsible? No. However, not only does it remove some temptation from your loved one, but it may open his or her eyes. The fact that you cared enough to include them in your estate planning may force them to consider changing their behavior.
The attorneys at Keystone Law have the know-how to analyze your current situation and help you develop estate plans that both benefit and protect your heirs. Call us at (480) 418-8448 to set up an appointment. We offer services for clients throughout Arizona, including Chandler, Gilbert, Sun Lakes, Tempe, Phoenix, Mesa, Scottsdale, and Apache Junction.
