Ohio residents may have concerns that a loved one will act irresponsibly after receiving an inheritance. However, there are ways to craft an estate plan that makes it difficult or impossible for a beneficiary to squander these funds. For instance, it may be possible to create a spendthrift trust that limits when and how much can be disbursed. This may be ideal for someone who has a spouse who likes to gamble or may have other problems managing money.
If necessary, it may be possible to put in place strict limits as to how much can be disbursed each month. Doing so may make it easier for the trustee to follow a person’s wishes. However, it may also deprive a person of funds that may be needed to cover legitimate expenses. The trustee may be any third-party who an individual trusts to administer the trust properly. In some cases, this may be an actual company or similar entity depending on how much an estate may be worth.
A family member may also act as a trustee, but this may not be wise in all situations. In some cases, it could strain or destroy relationships between parents and children or between siblings. If a trust company is not willing to oversee the trust, an attorney or a CPA may be willing to do so.
Wills or other estate planning documents may make it easier for a person to control assets now and into the future. Protecting beneficiaries from themselves may ensure that money or other assets are available to future generations. It may also make sure that funds are used in accordance with an individual’s wishes. An attorney may be able to help craft estate plan documents or review those already in existence.