ow that your assets are in a proper estate plan, its time to investigate the state of affairs with your named beneficiaries. Often we are faced with the prospect of a beneficiary that has a long history of money problems or substance abuse problems, or both. In other cases we see people that are highly susceptible to scams or confidence games and even cases where beneficiaries are in serial divorces or problem marriages. How can we protect this class of beneficiaries? Answer: Establish a "Spendthrift Trust" for their share to pour into. This is a trust that shields the beneficiary's money from creditors, poor choices and poor life choices. The trust itself will have a trustee in control of distribution who is not the beneficiary at issue. Over time this often leads to the beneficiary at issue to seek appropriate help and grow as a person to correct long standing issues.
OUR SERVICE TO YOU
- Identify beneficiaries in need
- Implement a spendthrift trust where appropriate
- Craft the spendthrift to provide in a caring and learning way
EXAMPLE FROM THE FILE CABINET
Rick has a complete estate plan in place, but is now faced with the fact that one of his daughters has a substance abuse issue and one of his sons has a gambling issue. Rick contacts the Missouri Elder Law Firm to review his existing documents in light of these new issues.
The Missouri Elder Law Firm is able to amend and re-craft Rick's estate plan to include two Spendthrift Trusts for the beneficiaries with recently discovered issues, thereby ensuring that the inheritance will provide for the beneficiaries rather than enhance the issues.