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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