Do You Have a Spendthrift Heir? by KraftLawIN

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									Do You Have a Spendthrift Heir?

If you have a spendthrift heir you may want to take steps to make sure that this family member does
not burn through his or her inheritance too quickly. Once you are gone this inheritance can be the
only thing standing between a particular individual and extreme financial hardship, so the stakes are
high.

One way that you can protect someone who is on your inheritance list from his or her own potentially
poor financial decisions would be to make this individual the beneficiary of a spendthrift trust.

These are irrevocable trusts that take the decision-making out of the hands of the beneficiary. You
appoint an independent trustee to administer the resources in accordance with your wishes. The
trustee makes investments and the beneficiary has no access to the principal. Many individuals will
engage the services of a trust company or the trust department of a bank so they can be certain that
the resources are being professionally managed.

Though the beneficiary can receive monetary distributions out of the trust he or she does not
technically own the funds. Therefore, the beneficiary's creditors cannot seek to attach these
resources.

Given the fact that these trusts are generally useful for people who have difficulty handling their
financial affairs the asset protection facet is part of the appeal.

Estate planning is not always a simple, cookie-cutter affair. Each family is different, each individual is
unique, and there are a wide range of solutions that could be appropriate depending on the
circumstances.

Experienced estate planning attorneys Indianapolis IN of the Frank & Kraft Attorneys at Law offers
estate planning and business planning resources to residents of Indianapolis IN. To learn more about
these free resources, please visit http://www.frankkraft.com today.

								
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