To set up a trust for your assets in Kentucky comes with a variety of benefits. When it comes to your beneficiaries, not all beneficiaries are responsible or talented in money management. These instances do not mean that you cannot leave money to your heirs but instead mean that you may prefer a trust to a will for irresponsible beneficiaries.
According to The Lane Report, recent years show an increase in legaltrusts. Trusts provide protection to assets and to the beneficiaries. A trust protects a beneficiary against creditors or other entities having access to his or her assets in the trust. If you worry that your beneficiary’s inheritance is at risk of his or her own decisions, then a trust offers peace of mind that no one can touch the money aside from the beneficiary.
An irresponsible beneficiary may try to gamble or spend the money unwisely. He or she may be unable to manage large sums of money at any given time. The trustee manages the money, invests trust assets and makes all of the decisions according to your wishes and according to what benefits the beneficiaries. You choose how long the trustee has this responsibility by deciding when a trust ends and how much money goes to the beneficiary. You may also give the trustee full discretion. For instance, if your beneficiary battles with a gambling addiction but wins his or her battle, the trustee may terminate the trust to allow the beneficiary access to the money.
The above information is for educational purposes and is not legal advice.
