Imagine this - you’re eighteen, it’s your senior year in high school, and you’ve just received a pile of cash from a distant relative who’s passed away. What’s your first move - invest in a home or land? Invest in an IRA, annuity, or stocks? Save it? If we’re being honest, probably none of these things. If you’re anything like me at that age, you’d head down to Brandon Ford and drive off with a brand new, red Mustang the same day. Not a wonderful idea, but who would think rationally in this situation? Not many of us, but maybe you’re the exception.
The situation I’ve described above is one that, in most cases, we tend to avoid, one we just don’t want to think about. Fortunately, there are very practical ways of avoiding this potential circumstance. When we create a trust (or even a last will) for a client, we generally recommend that it contain a contingent trust for a younger child to hold the child’s inheritance and pay it out fully when the child (or grandchild) reaches a specified age (perhaps 25 or 30). Sometimes, the child’s trust will even pay out the inheritance in multiple installments spanning a decade or more. Of course, the funds are made available to the child (or grandchild) for health, education, support, and maintenance, but Billy and Jane can’t otherwise access it (“blow it”) until he/she is more mature.
You love your family, and you want to ensure their future is safe, and the money you’ve worked so hard to save is protected and used for their benefit. Creating a trust with a contingent trust provision is one simple, effective way to do just that, and give you peace of mind.
If I can help you, a family member, or friend protect the next generation, please contact me at (813) 244-7758 or Ross@RossSpanoLaw.com.