Many Tennessee families spend decades building their wealth and making solid financial decisions to create growth and protect assets. When building an estate plan, creating a system to protect against the depletion of estate assets is often a top priority. No one wants to think about having his or her hard-earned assets squandered by chosen heirs, but that is exactly what happens in some cases. Fortunately, there are a number of trusts available to help prevent that outcome and ensure that wealth is available throughout an heir's lifetime and beyond.
Virtually everyone knows of someone who inherited a substantial amount of wealth and then set about spending every last penny. Often, those purchases include luxury cars, expensive vacations, various toys and other frivolous expenses. In many cases, heirs who lack financial savvy will end up with little to show for their loved ones' decades of toil and planning. In the worst case scenarios, they will be saddled with tax bills related to their purchases and no way to cover their tax obligations.
The best way to protect against such an outcome is to place wealth into one or more trusts. A trust can be structured in almost any manner that an individual desires. Limits and restrictions can be placed on how assets are distributed from the trust, when those assets can be accessed and how the wealth that remains in the trust is to be managed.
In some cases, Tennessee residents will select responsible family members to manage their trusts. If that is not an option, there are many professional trust management options available. This option can give families peace of mind from knowing that their loved ones will be provided for, while also protecting against the depletion of estate wealth.
Source: Forbes, "The Difference Between Having An Estate Plan And A Wealth Transfer Plan", Michael Chamberlain, July 18, 2016