You’ve worked hard to accumulate your wealth. If you haven’t already, now is the time to figure out how those assets will be dispersed when the time comes. But the thought of your loved ones inheriting your estate might leave you on edge, especially if you’re concerned about how those funds will be used or how quickly they’ll dry up. Fortunately, there are some estate planning tools you can utilize to give your estate more longevity.
Protecting the assets in your estate
There are several options at your disposal if you want to ensure that your estate’s assets are used wisely and last longer. Here are some of them:
- An incentive trust that conditions the release of trust assets on the satisfaction of an identified condition, which may include anything from getting married to graduating college or holding a full-time job for specified period of time.
- A spendthrift trust that incrementally releases trust assets to ensure that they aren’t quickly squandered away.
- A discretionary trust that allows the trustee, who you can name, to determine when assets should be released to the beneficiary and in what amount.
- A generation-skipping trust that leaves assets to your grandchildren, thereby ensuring that your estate and your legacy reaches further.
- A dynasty trust that seeks to provide financial support for multiple generations of your family.
There’s a lot to consider when engaging in the estate planning process. Fortunately, the process is customizable to suit your needs. However, estate planning can be complex. Whatever plan you come up with has to achieve your goals while also holding up to any legal challenges. For these and other reasons, it’s important to seek out experienced help.