Not everyone has the ability to manage their finances well. Some Ohio parents may have concerns about whether their children are responsible enough to handle a significant inheritance. Even people who usually make wise financial choices can make mistakes when they suddenly acquire a large sum of money. However, there are financial vehicles that parents can use to ensure that their minor and adult children will not waste away a legacy.
One of the estate planning tools a parent can use to safeguard inheritance funds is a trust. A trust allows inherited assets to be set aside for a beneficiary and disbursed according to certain stipulations.
A trust account requires the designation of a trustee. This person will make sure that the trust is properly managed. To avoid conflict, this role should not be given to someone in the family. Instead, the trust maker could give this responsibility to a reliable friend or professional financial advisor.
A trust can be created with the terms of funds distribution already established by the creator. For example, a fund could be set up to provide the beneficiary with a certain annual percentage of the inherited funds. The distribution of the assets can also be left to the discretion of the trustee, who can determine the time and the amount of the distributions.
There are a variety of estate planning tools that parents can use to make sure that their children’s inheritance is managed well. An attorney who practices estate planning could provide helpful advice relating to this topic.