A Georgia parent who is working on their estate plan may be concerned if they feel that one or more of their children make poor decisions with money. They might wonder whether it would be fair to set different conditions for one child that do not apply to the other.
People can place assets in a trust for a child or for anyone they would like to leave an inheritance to. For example, the trust can be set up so that a certain amount goes to the beneficiary each month, or the trustee can control when the beneficiary receives a distribution. The former may be a better solution in some cases because it would not put the trustee in the position of having to make a decision regarding when to allow a distribution.
Another consideration for a parent is who the trustee will be. A disinterested third party such as a professional financial advisor or a family friend might be a better choice than a relative. Choosing a family member could lead to tension.
A person who is creating an estate plan might want to work with an attorney. An attorney could explain the various trust options and make sure that everything is set up properly. For example, a person might want an irrevocable trust to protect their assets from creditors or they may want a revocable trust that can be changed during their lifetime. In cases that involve beneficiaries who might not be good with money, a spendthrift trust might be a suitable solution.
Kevin Tharpe
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