Have you ever heard the sad and sordid tales of those who won mega-million lottery jackpots — enough money to set themselves up for several lifetimes — but who somehow still died broke, sometimes only a few years later?
Unfortunately, unfettered wealth has been the road to ruin for many an individual. Some lack the financial savvy to invest and carefully manage their funds, while others simply make a series of really bad decisions, one right after the other.
The same fate may lie ahead for some of your own heirs and beneficiaries after you pass on. But you are now in a position to forestall such fiscal mismanagement.
Consider funding a spendthrift trust
Spendthrift trusts are great financial vehicles that effectively rein in beneficiaries’ worst impulses. To wit, the beneficiaries have no access to the trusts’ principal. Instead, they are periodically given predetermined sums of money at intervals as dictated by the trust.
The role of trustees with spendthrift trusts
Trust grantors also appoint trustees to manage these spendthrift trusts. Trustees are responsible individuals who are able to manage the principal of the trusts and oversee their administration. When beneficiaries are related, it is generally better to appoint an unrelated third-party trustee so as to avoid any family squabbles.
Want to learn more about a spendthrift trust?
If you would like to find out more about the many ways that both you and your heirs and beneficiaries might benefit from a spendthrift trust, give your San Antonio estate planning attorney a call. They can address all your questions and help guide your choices.