For Missouri residents who have accrued a relatively ample portfolio and are considering their legacy, it can be worrisome if they think their heirs could make mistakes to deplete or outright lose their inheritance. As Baby Boomers age, they are increasingly thinking about how to create an estate plan that addresses financial factors that frequently arise. Certain strategies can be effective to help those heirs to protect what they have been bestowed through the estate plan.
Protecting heirs requires comprehensive planning
People who suddenly inherit a large sum or a property that is of significant value are prone to making mistakes. Explaining how to protect their property is a crucial aspect of its maintenance and growth. Buying an expensive automobile or a vacation property might be tempting, but before doing so, it is a good idea to think about other ways to use the inheritance to best suit the future endeavors. If there is a business that is set to be passed down, this too can be a concern. Intelligent preparation can avoid drastic mistakes.
Trusts can be helpful to dictate how an heir will move forward. Wills are often the main estate planning device, but a trust has certain benefits. Some people fail to create even a basic estate plan. Younger individuals who are under the impression that they have plenty of time to do so may make this gaffe, but it happens with older people too. The will says how the property will be distributed and is designed to prevent heirs from engaging in an extended dispute over it. A trust has stipulations that must be met for the heir to have access to it. For example, it might be a requirement for the person to attend school and get a degree before being granted funds or other properties in the trust. This is just one way a trust can help with legacy planning.
Experienced professionals can help with an estate plan
Whether the person who is creating an estate plan is just getting started or there is already an estate plan in place and changes need to be made to address familial concerns, it is wise to have legal advice regarding the document and what it entails. Regardless of the circumstances, an estate plan is a vital document. Consulting with legal professionals experienced in the available options based on the goals is a solid step.