Trust-fund progressives: a new breed of young, wealthy inheritors
Some heirs like to give away their inheritances but not everyone can afford to do so. It is important to establish and maintain a legally binding estate plan so that your wishes may be carried out.
April 19, 2013
Trust-fund progressives: a new breed of young, wealthy inheritorsArticle provided by Lannik Law, LLC
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Some people may think they are crazy but there is a new breed of wealthy heirs out there, those who give away their inheritances. Most people pay off debts, buy a few nice things and sock away money for their future when they come into an inheritance. Others, however, struggle with the responsibility that comes with a large inheritance and, disgruntled with the financial inequities they see in society, give away most or all of their newly acquired funds.
Preferring the label "trust-fund progressives," the small group of people is comprised mostly of young adults who try to level the playing field for those around them by donating to organizations that promote social change. Some even split their inheritances with childhood friends, finding that once they came into money, they were uncomfortable with the financial differences between them and their companions.
Establishing an estate plan
Most people do not feel the need to give their money away nor have the means to do so. However, no matter the size of your estate, it is important to talk with an estate planning attorney for a number of reasons. An estate plan can help you deal with such financial and non-financial issues as:
-Protecting your assets
-Minimizing estate taxes
-Establishing guardianships for your children
-Planning for long-term care of a family member with special needs
-Preparing for retirement
-Addressing future medical and nursing home needs
In Massachusetts, a trust may be necessary to avoid probate. A trust creates the foundation for your estate plan and may protect your assets from creditors, former spouses and other financial threats. A trustis tailor-made to your particular circumstances and you can get as detailed as you want regarding how your estate is maintained and distributed.
If you are concerned that your children or other family members are unable to handle their finances, especially if they stand to inherit large sums of money, you can also prevent them from accessing too much money too quickly after your death.
Seek legal assistance
If you currently do not have an estate plan or have not recently reviewed your estate documents, consult an experienced estate planning attorney. Laws change frequently, negating carefully crafted plans without notice. Family dynamics change with births, deaths, serious illnesses and divorces. It is important to update your will, trust and other estate planning documents on a regular basis to make sure your wishes are fulfilled. A knowledgeable lawyer can help.