If you have a child with personal problems or financial problems, or even one with whom your relationship is not so good, it can be tempting to rewrite your will to reduce your original bequest or to disinherit them altogether. This can be a tough and emotional decision for a testator, especially when wanting to leave their child in good financial health, but also wishing to teach them a tough lesson. While there are, without a doubt, good reasons to reduce the inheritance or to even disinherit an heir, their might very well be another way to achieve your goal and to leave your child with a strong financial backing while looking after his or her best interest as well.
Just because an heir has personal problems, cannot manage money to save their life, or has had a rough and tumble relationship with you does not mean he or she should not receive an inheritance. Extreme circumstances call for reductions and disinheriting, but in many cases, this looks more like posthumous revenge when the will is read. Leaving your child a little something is a great way to tell them that despite past issues, you care about, love them, and want only the best for them. In estate planning, you have the option to set up a trust for your troubled heir. A trustee will administer the funds, ensuring the money is managed wisely and will stretch. Trusts require that the funds be accounted for, and typically, there is a limit to how much the heir can access at once.
- Do You Still Control Property in a Living Trust? - March 31, 2021
- Can You Change a Trust? - March 22, 2021
- What Is a Testamentary Trust? - March 10, 2021
