The question of controlling how inherited funds are used is a common one for estate planning, and the answer is a resounding yes, though the method varies depending on the desired level of control and the beneficiary’s capacity. Many clients, like Steve Bliss’ clients in Wildomar and surrounding areas, seek ways to ensure their legacy benefits future generations responsibly, whether it’s funding education, supporting a specific cause, or simply preventing impulsive spending. This desire often leads to the exploration of trusts, which offer a powerful mechanism for dictating the terms of inheritance. Roughly 58% of high-net-worth individuals utilize trusts to manage and distribute their wealth, demonstrating the widespread recognition of their efficacy.
What are the options for controlling inherited funds?
Several tools are available to limit how inherited funds are used. A simple will can direct funds to a beneficiary with minimal restriction, however, this offers no long-term control. A testamentary trust, created within a will, allows you to specify conditions for distribution after your passing. For instance, you could stipulate that funds are released in installments over time, or only upon achieving certain milestones like completing a degree or purchasing a home. More complex trusts, like dynasty trusts, can extend these controls across multiple generations, shielding assets from creditors and estate taxes while dictating how funds are used for decades to come. These often include a “spendthrift clause” which protects the funds from being seized by creditors or wasted by the beneficiary.
How do trusts offer more control than a simple will?
Trusts are superior to wills in controlling distributions because they establish a separate legal entity – the trust – that owns the assets. A trustee, designated by the grantor (the person creating the trust), is legally obligated to manage and distribute the assets according to the trust’s terms. This offers a significant layer of protection and control that a will simply cannot provide. “I had a client, Martha, who was deeply concerned about her son’s financial habits,” Steve Bliss recalls. “He’d struggled with impulsive spending his entire life. She didn’t want to simply leave him a large sum of money knowing it would likely be gone within a year. We established a trust that provided for his needs – housing, food, healthcare – but distributed additional funds only for specific, pre-approved purposes, like education or starting a business.” This allowed Martha to provide for her son without enabling his destructive behavior.
What happened when a client didn’t plan properly?
I remember a case involving a man named Robert, who left a significant inheritance to his daughter, Emily, with no restrictions. Emily, unfortunately, had recently fallen in with a questionable group of friends. Within months of receiving the funds, she’d invested nearly all of it in a failed business venture promoted by those friends. She ended up bankrupt, disillusioned, and deeply regretful. “It was a painful situation,” Steve shared. “Had Robert established a trust with clear guidelines for distribution – perhaps requiring a business plan review or phasing the funds over time – Emily might have avoided that disaster.” According to a study by the National Bureau of Economic Research, approximately 30% of inherited wealth is dissipated within a generation, highlighting the importance of careful planning.
How did a trust help a family secure their future?
Fortunately, I also had a client, David, who understood the importance of long-term planning. He established a special needs trust for his son, Michael, who had a developmental disability. The trust provided for Michael’s lifelong care, ensuring he would always have the resources he needed without jeopardizing his eligibility for government benefits. “It gave David immense peace of mind knowing that his son would be well cared for long after he was gone,” Steve explained. “The trust stipulated how the funds could be used – for medical expenses, therapies, housing, and recreational activities – and appointed a trusted individual to manage the assets and advocate for Michael’s best interests.” This is a testament to the power of proactive estate planning and the ability to shape a lasting legacy of care and responsibility. It’s about more than just money; it’s about ensuring your values and intentions are carried out for generations to come.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How do I choose someone to make decisions for me if I’m incapacitated?” Or “Can I avoid probate altogether?” or “What happens if I forget to put something into my trust? and even: “Does my spouse have to file bankruptcy with me?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.