You love your grandchild, niece, nephew or sibling. But – and this is a big but. That individual has proven to make some very irresponsible choices in their life. Maybe they have gotten into credit card debt due to excessive “retail therapy.” Or perhaps they have been socializing with a questionable crowd, the kind that gets into minor skirmishes with the law on a regular basis. Or maybe they recently married an individual everyone in the family believes is a bad actor. Whatever the reason, you have become hesitant to create or update your estate plan because you don’t know what to do. You are worried that if you leave all or some of your assets to this heir, they will blow it or even use it in some nefarious way. If you suspect drug use, you don’t want to add fuel to that situation. And you sure don’t want that new and questionable spouse to take advantage of your heir when they come into their inheritance. What is a loving relative to do? Here are a few tips to help you sort it out and determine how you can still name them as a beneficiary.
- Trusts & Legal Structure
Consider setting up a trust designed to manage and distribute assets in a way that protects the beneficiary from their irresponsibility.
- Conditional Inheritance
Depending on the unique situation, you could specify conditions or requirements that the beneficiary must meet in order to receive their inheritance.
- Family Discussions
If you haven’t tried talking with the beneficiary about your concerns, an open and honest discussion within the family may help develop a path for the individual to become more responsible.
- Professional Help
Often, irresponsible behavior and bad choices are rooted in emotional problems. Helping your loved one find a trusted therapist to work through the fundamental reasons for behaviors such as excessive spending can dramatically improve the situation.
You won’t be the first or last individual who has procrastinated putting your affairs in order because of a problematic but much-loved beneficiary. Perhaps you have been waiting years for the individual to “grow out of it .” Sometimes that happens. Often, it doesn’t. Meanwhile, you haven’t taken steps to protect your hard-earned assets or any of your loved ones, including the “irresponsible one.”
You don’t want to cut them out, but … you’re unsure how best to include them. If this is your situation, let’s talk about it. My years of experience have taught me that there is a solution to every family challenge. Let’s see how we can develop one for you. Call me today at 513-399-7526 or visit my website, www.davidlefton.com.