Parents often come to us asking how they can protect an inheritance they want to give to a child who has a shaky marriage. A trust can provide protection if it is properly crafted and implemented. It all hinges on whether the child has the ability compel a distribution from the trust.
As we age, most of us will find the costs of long term care unaffordable. The current average cost of a semi-private room in a nursing home in Connecticut is over $12,000 per month. This charge can quickly wipe out even a large estate, depending on the length of the resident’s stay. Fortunately, Medicaid is available to pay these costs if you qualify for assistance.
A Transparent Trust is a trust in which the sole beneficiary (the person receiving the assets) serves as the sole Trustee (the person responsible for managing and distributing the assets). This means an adult child can both receive and manage the assets of the Trust.
Most people do not realize that there are many ways to leave property to your children. For children who do not receive public benefits, these include:
For many people, the decision to prepare a Will is easy, but the motivation to follow through is missing. The thinking goes something like this:
What’s the rush? I am in good health. There are more pressing matters. I’ll get to it eventually. I plan on being around for a long time. Right now, I need to focus on supporting my family, saving for college and retirement, and paying for health care. I’ll prepare a Will at the end of the year when things slow down.
Most people who have adult children figure it is easiest to give an inheritance to your children outright with no strings attached. It is simple and clean. But there are downsides to giving to your adult children in a simple manner. Your grandchildren may never receive it. It could pass to the child’s spouse, the spouse could remarry, and all of the inheritance you gave to your child could go outside your family to the new mate of your child's spouse.
