Is A Trust Better Than a Lump Sum Inheritance?
People who do not have a lot of money often dream about what they would do if they suddenly
received a windfall. They think about how they would spend the money, that is, and not about how they
would manage it. There is a reason the old question is "What would you buy if you won the lottery," and
not, "How would you manage your money if you won the lottery?" This creates an issue for people who
want to leave large inheritances to family members who are not already independently wealthy.
When you plan to give an inheritance to someone, you usually contemplate that he or she will probably
spend some of that money to buy things. But, usually you also plan that the money will last long enough
to serve as a continual source of income. However, if you give someone a large lump sum, you have no
way to prevent that person from spending it all as soon as possible.
There are ways that you can prevent your relatives from wasting their inheritances. Trusts, for example,
can be used to distribute monthly amounts to the beneficiaries. The other assets of the Trust can be
invested to earn interest. This creates a larger inheritance than the giving the same amount as a lump
Ask an experienced estate planning attorney about setting up a Trust to leave an inheritance for your
Experienced estate planning attorneys Portland OR of the Law Offices of Richard B. Schneider LLC offers
estate planning and business planning resources to residents of Portland OR. To learn more about these
free resources, please visit http://www.rbsllc.com today.