When crafting a trust to leave money for your heirs, your focus is on establishing rules and regulations. The trust is supposed to give you some control over what happens to that money so that it isn’t wasted.
For instance, perhaps it is an educational trust. You want to make sure your heirs spend their money on their education, not on just having fun, and so you make it so that the trustee can only give them money for tuition, books, room and board, and other such expenses.
You can’t predict the future, and an inflexible trust can spell trouble
That’s a fine plan, but trusts do need to be flexible in case the future does not play out the way that you assumed it would. You can’t predict everything. What if something happens that means you do not actually want your heir to be bound by the trust?
For example, maybe your grandchild starts going to college, using the money from the trust. Then one of their parents gets sick. The college student wants to take care of them and takes a break from school to do it. They could really use that money from the trust. Do you want them to have access to it or do you want it to stay earmarked for education?
When creating a trust, it’s easy to assume you’re making it so that they can’t just drop out and waste your money. But you have to consider that there are many other reasons someone could leave college, and you want to make sure your estate plan addresses them.
Building the right estate plan and trust for your needs
Drafting the right estate plan takes a great deal of thought and creativity. The right legal team can help you get it all in place perfectly.