Business Succession, Definitions, Estate Planning, Legacy, Probate, Real Estate, Trusts, Wealth, Wills

How to Keep Your Kids From Buying Sports Cars After You Pass

This week a client of mine asked how can he keep his kids from buying Ferraris when he passed away.

He has three kids, two of which are responsible enough to (hopefully) see the opportunity in investing any inheritance.

The last kid? Not a chance.

My client noticed the the unfortunate nature of humans: once someone has passed away, we aren’t worried about spending this “free” money we inherit on whatever we want.

In fact, most inheritances are spent quickly and rashly with little thought to the future, as if an inheritance is pennies from heaven.

My answer to the client was simple: he can’t prevent the last kid buying Ferraris.

At least, not without an effective estate plan.

A possible solution was funding a revocable living trust and putting limitations on when the children received their inheritances.

As the owner of the trust, he could limit the distributions however he wanted, including whether the funds were used for Ferraris or something more productive.

He left the office a little happier (and the kid probably a little sadder) knowing that a customized estate plan can control how funds are used, even after the client is gone.

Legion Law offers customized estate plans that can even prevent the purchase of Ferraris if you so need.

It wouldn’t be the Legion Law Letter without offering information on how to get in touch with your estate planning and probate attorney. Feel free to schedule a meeting at legionlawpllc.com/contact-us/ for any questions, concerns, or issues you need resolved.

Cheers,


Derek Christensen

Founder of Legion Law, PLLC