Estate Planning & Living Trusts
36. You control inheritance (cont.)
You can provide for a loved one with special needs without disturbing valuable government benefits. You can safeguard a minor child's inheritance. You could also supplement the income of a child who wants to be a teacher or do other low-paying -- but very important -- community service work.
Even if you feel that your beneficiary would handle the inheritance well, you may want to keep the assets in the trust to protect them from creditors, current spouses, ex-spouses, potential lawsuits and future death taxes. Your trustee can make distributions to the beneficiary as needed, but the assets that remain in the trust would be protected from these creditors and predators and, if invested well, could even help provide for future generations.
Most people like to leave their children or grandchildren with enough so they can do anything they want, but not so much that they do nothing. With a trust, you can do this and more. No other estate plan gives you this much flexibility and control.