Family dynamics a consideration in deciding to transfer assets

Many California residents recognize the need for estate planning. For most, the need to protect loved ones and minimize estate taxes are the driving force behind such planning. However, for some families, there are other factors which can have a tremendous effect upon how and when one desires to transfer assets.

Some parents may decide to use their estate planning tools as a method to encourage a child or children to do something specific. For example, the parents may want to encourage the children to further their education. In an attempt to do this, they may decide to place a statement in the will that provides for the transfer of assets once the specified educational goal has been reached. Additionally, rather than use a will, some families will establish a trust that will begin to pay out once the goal has been obtained.

In other cases, the intended recipient may not be in a position to manage his or her own affairs. For example, the individual may suffer from alcohol or drug addictions that would prevent him or her from making the appropriate choices when faced with a substantial inheritance. In this case, the family may decide to establish a trust to assist in taking care of and providing for this individual. Such a trust is typically administered by a trustee and can provide incentives for the beneficiary to receive help for his or her condition.

The decision of how to transfer assets is an important one. Many California families have a number of factors which need to be taken into consideration throughout the estate planning process. Open, honest discussions regarding specific family dynamics with an experienced estate planning attorney can be a beneficial part of the process.

Source: wealthmanagement.com, “The Other Reasons For Estate Planning“, Janice A. Forgays, Feb. 1, 2017

Archives

Contact Form

FindLaw Network