Connors & Sullivan attorneys at law, pllc
Tell Us About Your Estate Planning Needs:
718-414-6209

Sometimes it may be necessary to protect children from themselves

As you begin estate planning, you may want leave money for your children even though they may not have inherited your good financial sense. If there is a chance a child could squander his or her inheritance, it may be appropriate to take precautions to help protect your hard-earned money and save your child from himself or herself.

Some children should not inherit a large lump sum

Although you may want to leave your money to your children, a child who does not have good money management skills may spend the money wastefully. For some children, receiving a large lump sum could even cause more harm than good.

A child may not be prepared to make responsible financial decisions if he or she:

  • Has accumulated significant debt
  • Struggles with drug or alcohol addiction
  • Has a gambling problem
  • Faces bankruptcy
  • Exhibits general impulsivity

A spendthrift trust can limit your childs access to the money

Although it could be dangerous for some children to inherit a large lump sum, that does not necessarily mean you must disinherit them. A spendthrift trust offers one way to leave a child money, while ensuring the child will not waste the money.

With a spendthrift trust, you can choose someone who is financially savvy to serve as the trustee. This person will manage the money on behalf of your child and distribute it to him or her according to the provisions of the trust. Often, the provisions will allow the trustee to provide distributions at his or her discretion, but sometimes the provisions are more restrictive.

You can design the trust to last throughout your child’s lifetime or for a set number of years. Your child will not be able to blow all the money on something frivolous because he or she will receive his or her inheritance in small amounts over time. Also, the money in the trust can remain safe from creditor claims because your child does not have direct control of the money in the trust.

While some children can manage their finances wisely, other children cannot. When a child does not have the financial sense to use his or her inheritance wisely, it may be appropriate to consider a spendthrift trust or other estate planning tools designed to protect a beneficiary from himself or herself.

No Comments

Leave a comment
Comment Information
Your Trusted Guides For Every Stage Of Life And Every Step
Of The Estate Planning Process
EMAIL US FOR A RESPONSE

Set Up Your Free Initial Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Connors & Sullivan attorneys at law, pllc

Visit us at one of our 5 locations.

Brooklyn Office
7408 Fifth Avenue
Brooklyn, NY 11209

Phone: 718-414-6209
Fax: 718-238-2616
Brooklyn map

Bayside Office
200-20 Northern Boulevard
Bayside, NY 11361

Phone: 718-414-6209
Bayside map

Middle Village Office
79-43 Metropolitan Avenue
Middle Village, NY 11379

Phone: 718-414-6209
middle village map

Staten Island Office
1250 Hylan Boulevard
Staten Island, NY 10305

Phone: 718-414-6209
staten island map

Manhattan Office
110 East 59th Street
New York, NY 10022

Phone: 718-414-6209
Map & Directions