Many people in Georgia want to ensure that their children are provided for in the future. At the same time, they may worry about how young, irresponsible or financially inexperienced children will handle significant amounts of wealth after a sudden inheritance. Many people have experienced financial disaster after acquiring large sums of money quickly and lose their assets as a result. This is one reason why parents may look for estate planning solutions that can impose protections as part of the transfer of assets, especially for beneficiaries who are particularly likely to overspend and lose their wealth.
Trusts can be a primary mechanism that enable people to pass on wealth while building in protections. A spendthrift trust or asset protection trust can be created while a person is living or after their death, either through the will or other testamentary documents. The trustee is given significant discretion to provide the beneficiaries with access to the income and principal of the trust without turning over full access to the principal of the trust itself. This is similar to the structure often used when transferring gifts to minors, but it can be used when giving money to a person who is known to be financially impetuous or unreliable.
In some cases, the trust may last for the lifetime of the beneficiary; in other cases, it can remain in place for a fixed number of years before turning over the principal to the beneficiary’s control. It can also provide for mandatory distributions throughout the beneficiary’s lifetime.
There are a number of unique solutions that people can use to help ensure that their loved ones are protected and cared for after they are gone. People thinking about the future may work with an estate planning attorney to learn about their options and create key documents like wills and trusts.