It’s taken you decades to accumulate your wealth. Now you’re in a position where you can specify how those assets will be handed down to your loved ones through the estate planning process. But as you prepare to do so, you might find yourself worried about how those assets are going to be used and whether they’re going to be squandered away.
These are understandable concerns, but you can reduce the risk of your hard-earned wealth quickly evaporating after you pass away.
How to ensure longevity of your estate’s assets
Given the customizable approach you can take to your estate planning, you have several options at your disposal when it comes to protecting the long-term viability of your estate’s assets. Here are some of the most used that might be right for your plan:
- An incentive trust that allows for the release of trust assets only after an identified condition is met, such as the beneficiary getting married, graduating from college, or remaining employed for a certain period.
- A spendthrift trust that restricts the amount of wealth a beneficiary can access so that trust assets aren’t quickly spent.
- A discretionary trust that allows your named trustee to dictate when assets will be released to a beneficiary and in what amount.
- A generation-skipping trust, which provides financial support directly to your grandchildren.
- A remainder trust that allows you to support one person during their lifetime with any remaining proceeds being redirected to other identified beneficiaries.
Do you want your estate to have longevity?
If so, you need to engage in effective estate planning. Part of that is merely knowing what you can and can’t do with your estate under your unique set of circumstances. This is where legal resources may be able to provide some guidance and set you on the path to successful estate plan creation.