If you've started the early stages of estate planning, but you're worried that your spouse may not adhere to some of your wishes, what do you do? When it comes to protecting the inheritance you're leaving for your children, there are a few options available. Before you resign yourself to letting your spouse handle it how they see fit, here are a couple of things you can do to secure your child's inheritance in the event of your death.
Put It In A Trust
Creating a trust is a great way to ensure that the inheritance goes where it should. You'll have to name a trustee, though, so make sure you choose someone that you can be certain will handle it responsibly. Then, you can list your child as the beneficiary, ensuring that he or she gets whatever has been placed in that trust. Remember that a trust is a legally binding entity, so you won't have to worry about unauthorized access or use. Select a trustworthy person to serve as the trustee, and make sure each of the involved parties has a copy of the trust documents. That way, there is no confusion about what you wanted.
For the most security, you should consider a lifetime trust. It will stay in place for your beneficiary's entire lifetime, and it will pass to his or her heir when your beneficiary passes away. Choosing a lifetime trust will keep that inheritance with the person you intended it for throughout his or her life. Assets that are placed in a lifetime trust are protected from any claims should the beneficiary get married, and there are also tax benefits.
Put The Assets In A Legal Entity
Another way to protect your child's inheritance is through the establishment of a family limited partnership or a limited liability company. You'll be able to limit asset and ownership transfers of the business and all of its assets this way, ensuring that all of it is there for your child.
Be Honest With Your Family
In addition to these steps as they are outlined here, the other thing you can do is to sit your entire family down and explain to them what your expectations are. When everyone is in the same room at the same time hearing the same wishes, it's harder for any one person to not carry them out the way that you want.
Your estate planning attorney can help you decide the best means for securing your child's inheritance. Talk with him or her today for more information, or visit a site such as http://www.linskylaw.com.