Did you know that the best way for parents to safeguard their legacy with respect to children who are spendthrifts, or alcohol or drug abusers, is by using a Living Trust?
With a properly drafted Trust, parents may place conditions upon their children before they are permitted to collect Trust proceeds.
Common conditions include, “My son must attend AA meetings for two consecutive years” or “My daughter must open a Roth IRA and fully fund it for two years.”
It is also advisable that parents designate the Trust, and not their children, as the beneficiary of their IRAs, so that the IRAs become assets of the Trust. A carefully drafted Trust may then delay IRA distributions to the children for at least 10 years.
Kindly contact us to schedule a no-cost consultation regarding Living Trusts or any other estate planning needs you may have.