Inheritances are left behind by a person who wants their loved ones to have a piece of their life. An inheritance is not just an asset or an amount of money, it’s a gift that should be respected and appreciated.
There are many times when people who are setting up their estate plans want to leave behind inheritances but are worried about how to do so without causing problems. Leaving a large inheritance to one person while seemingly overlooking another could be detrimental to the family on the whole, for example.
At the end of the day, it’s up to you to decide how you want to leave behind assets for your loved ones. It’s your choice who you leave an inheritance for as well. Still, there are some things you can do to reduce the risk of conflict.
One of the best options is to discuss setting up a trust. A trust can be designed to pay out to certain individuals only when the right conditions are met. For example, if you have three children and want to leave them all $100,000 to use, you might list requirements that must be met before they can accept it. For instance, for your child who has trouble saving, you may require that they only spend the money on a home, schooling or other necessities. For your loved one who is great with money, you might only ask that they turn 18 and are paid out a portion of the amount each month instead of getting it all at once.
Trusts give you control and let you dictate the terms. There’s no question who they’re for or about the terms of distribution. Your attorney will discuss trusts with you if you feel you’re interested.