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Handling estate planning for a financially irresponsible heir

| Dec 18, 2020 | Estate Planning And Probate |

Many people in Michigan plan to divide their assets evenly among their children or family members upon their passing. However, some may not want to do that, particularly if someone in their family isn’t good with money. Whatever the reasons may be, the estate owner may worry that his or her assets will be spent quickly or recklessly if simply left to a certain person. The good news is that estate planning provides ways to avoid this potential problem and ensure that one’s assets are managed properly after one’s death.

The first thing people need to know is that it is perfectly okay to give uneven amounts of assets to their beneficiaries. People do this all the time, even for positive reasons, such as one child making more money than another on his or her own. It could be particularly important in the case of families who have a disabled loved one who require more care and have less ability to generate income. What’s more is that the estate owner can change their plans for asset allocation at any point for any reason they like, so if one child shows more ability to be financially responsible, the owner could decide to leave them more money.

It might make sense to establish a trust that will dole out the assets on a specified schedule or as certain requirements are met. The estate owner can designate a trustee to handle this, either naming another family member or utilizing a professional. Though a professional will charge a fee, and even creating a trust will likely incur some cost, it may be well worth the money for the assurance that one’s assets will be properly managed.

Estate planning is important for Michigan families of all types, regardless of assets or income. One of the most effective ways to ensure it is properly conducted is by working with an estate planning attorney. A legal professional will think of factors that the estate owner may not have considered and have experience that may be invaluable in such an important process.

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