Photo of Professionals at Doyle Quane
Photo of Professionals at Doyle Quane
Premier Estate Planning & Family Law Attorneys in Danville, CA

How can you plan for an heir who isn’t good with money? 

On Behalf of | Oct 26, 2021 | Estate Planning

You have always put a lot of thought into how you use and save your money, making wise financial decisions for decades. This has helped you amass a fair amount of wealth, and you’re happy with your lifestyle. 

As you grow older and begin making an estate plan, though, you realize that one of your heirs is not nearly as good with money. They tend to make mistakes, waste money in frivolous ways and simply demonstrate that they’re not going to follow in your footsteps. 

What can you do?

 You could disinherit them and leave your money to other heirs who will take better care of it, but you really want to keep everyone in the estate plan. What options do you have?

It may be best to use a trust. For instance, if your heir is just irresponsible because they’re young, consider putting the money in a trust that only gives them 10% right away and holds the rest until they turn 35 years of age. They still get the money, but you may save a 21-year-old from making mistakes that they’ll regret later in life. 

Another option is to use the trust to designate the money for a specific purpose. Examples include buying a house, starting a business or paying college tuition. In this way, you still give them the inheritance they are expecting, but you also help them use it in a way that is in line with your values. 

The key is to make a comprehensive estate plan. When you do so, it can address all of your family’s unique needs and any concerns that you have. There are always options.