Are you concerned that your adult children will access your estate and spend your money too quickly? Whether you are leaving behind a large sum of money or you want to reward your children during your lifetime, you need an asset protection solution in place early to minimize loss. Top Wilmington estate attorney from Legacy Lawyers discusses how to preserve your wealth below.
Why Protect Your Assets From Your Adult Children?
Parents have many reasons to work aggressively to protect assets from their adult children. You may have young adults who have yet to get through college or into a stable job. You don’t want to award them access to a trust until they’ve achieved key goals you’ve established. Or, you may be worried about the poor decision-making skills of your adult children, as evidenced by drug or financial problems.
You may also be concerned with what will happen to your assets should you become incapacitated or ill. Many parents want to ensure adult children gain access to their assets at the proper time, and only if certain goals are achieved. Is this possible?
How to Protect Your Assets
Creating an estate plan is the first step in protecting your assets from any access. Your estate planning attorney will ask you what your wishes are and then offer insight into which tools may help you.
For example, you may wish to establish a trust to hold your adult children’s inheritance until they achieve specific goals. Trusts can hold these assets legally and provide for someone else, usually a third-party, to govern access to them by your adult children based on the rules you set.
Another option may be a plan of distribution. In this case, you may award your adult children certain percentages of your assets when they reach various ages or milestones. This may give you some financial peace of mind in that they will not burn through their assets too quickly.
Work With an Estate Planning Attorney to Leave a Lasting Legacy
Establishing a will, trust, and other components of an estate plan allows you to spell out the specific goals you have. There are limitations within the law, though. That’s why it is essential to work with your North Carolina estate planning attorney to create a plan that’s both acceptable to you and legally binding to remain in place long-term. Contact Legacy Lawyers today so we can work on your unique needs.