How To Leave Inheritance To a Carefree Child
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- Опубліковано 12 чер 2024
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In this video I focus on the decisions you will need to make when you have one or more children or heirs who, let’s just say, don’t share the same appreciation for saving and preserving money that you do. In other words, you have one or more heirs who may be in their 20’s, 30’s, 40s or 50s, and you just know, based on their prior less than financially mature actions and behaviors, or due to the fact that they are in an unhealthy relationship, or they have addiction issues that are difficult to cope with, that they’ll spend, give away, consume that future inheritance that you give them if you simply dump that lump sum of an inheritance in their lap when you pass away. Of course what you’d like to see happen is that inheritance be set aside, managed properly, invested, budgeted, and allowed to improve the quality of life for that child or heir for the remainder of their lifetime.
So once you get to that point of, “I’ve seen enough from that child. I’ve worked too hard to have that child’s inheritance just wasted away when in reality, my child will really need that inheritance to provide for their own food and housing after I pass away.”
So let’s dive into what decisions you will make in order to enable that inheritance for that financially imperfect child to be positive and impactful. So, in my mind, there are a few major decisions that you will make when leaving an inheritance in a trust for your child, along with other decisions as well.
0:00 When Kids Can't Handle an Inheritance
1:16 The Decisions Necessary for an Impactful Inheritance
1:59 Mechanics of Leavings Assets to a Trust
2:43 Outright versus In Trust
3:06 Who Will Be the Trustee?
3:36 The Trustee Thought-Selection Process
6:02 When Happens to Trust Income?
7:02 When is Trust Principal Distributed?
8:59 When Does the Trust Terminate?
9:50 Or, "I'll Be Dead"
10:16 AEPL
Knew a guy 40 years ago who was carefree. Was ivy league educated. Mom owned a local newspaper (when it was a lucrative thing) he went thru the year broke, when his trust payout came he'd pay up his bills and start over. Mom did the right thing, this guy lived this way until he passed away as an old man.
And... how to "protect them from bad wives 👺"..... Same, or more, need for protection.... 💪
PAUL💪❤ love your idea of the pay-outs or distributions being "incremental" or "layered..." At different ages.... Perhaps every decade ? IF they are capable of learning from their past mistakes (and the mistake of marriage), then eventually they will "figure it out..." Hopefully 🤞
Great video! I am a trustee and this is sooo clear. Thank you.
Or you could spend it all before you die.
Corporate trustees are a "rip-off" in my experience ❗ They are GREEDY and only want big-buck trusts... Hope you can design a "fix" for that... A new business for you to create Paul ? 😊...
Loving it!
Thank you. Very important information
Glad it was helpful!
great info
Perhaps an odd thing, I did not grow up understanding how to develop wealth. I figured out how to in my mid life, and think I have passed this knowledge on to my children, as my parents did not for me. Fortunately, I trust my kids to handle whatever my wife and I are allowed to leave to them. (And yes, everything is set up in trusts, but provide enough leeway to allow them to do with their shares as they will. I'll be dead, so it really won't make me mad one way or the other if they piss it away. But we've told them how they "should" handle it, and I think they get it.) Hint: Our two children are the trustees of their portion of the estate. Both grown, and as mentioned, we've done our best to make them understand how to build wealth.
How much is a reasonable amount of money to set up a trust, and can you change a trust once it has been set up ? Thank you in advance for all of your information.
I have a question. I have 4 children. My oldest child (daughter) has been estranged from me and her brothers and sister since she was 19..she is now 51. Her father is not, and has never been, in our lives. My heart is torn. I also have grand children and great grand children some of which are hers who have also remained estranged. Would you still leave money to her? I don't even know where she is at this point.
Hi Paul, is it possible to schedule phone call with you. Thank you Janet
Best thing to do is don’t leave them money buy them things that will give them a stable life instead a paid off/for house car medical insurance and education and he can go and get the rest himself a brand new car like a Toyota will last 20years a house 50 years most likely you will buy him all that at his 30s his house will last him a life time while his car will last him his whole career if I had money that’s all I will do for my child the rest is up to them.
My cousin let his brother -in -law be the trustee because his wife could not be trusted with money . My cousin died leaving behind a wife and minor child. Well the surviving wife who was not good with money badgered her brother ( the trustee) to death until he literally over the years gave up all the money to her leaving behind nothing for the now grown child… The wife developed a gambling habit and she and her many boyfriends blew about 3 million dollars…
Sad story