When parents in Georgia are thinking about estate planning, they might be worried about their children squandering their inheritances too soon. However, there are steps that parents can take to help prevent their children from mismanaging the inheritances that they receive.
Parents who are concerned about this issue might want to consider establishing trusts instead of simply passing their assets in single lump sums to their beneficiaries. A trust fund may be a good idea if the beneficiary does not know how to handle managing their money correctly. An added benefit of trusts is that they pass outside of the probate court process. When a parent establishes a trust for the benefit of his or her child, he or she can make stipulations that the money be distributed to that child at a pre-determined frequency, like once every year for instance.
He or she may also appoint a trustee who can determine when to make distributions and how much should be given. If only one child has problems with handling his or her money, the parent should avoid appointing another child as the trustee as doing so could cause conflicts in the future. A parent might instead choose to appoint a family friend or use a trust administration agency to handle the account.
An estate-planning attorney might be able to help an individual establish a trust fund, write a will, or assign a power of attorney. This might help the person have peace of mind about how their assets would be distributed to their beneficiaries. A lawyer could also answer questions regarding long-term care planning, the probate process, and estate taxes.