When all is said and done and we are no longer on this earth, whatever we have left has to go somewhere. Some of my clients are obsessed with leaving their children as much money as possible. Some clients have the attitude that whatever the kids get is more than they started with. A significant portion of individuals have children with special needs and face a dilemma of how to provide for those needs without forfeiting their children's government benefits.
There are multitudes of ways to leave an inheritance. Out right, in trust with the children as trustees, in trust for the children with professional trustees, a special needs trust, a spendthrift trust, a periodic income stream and so on. It all depends on the desire of people making the bequests and the capabilities of the heirs.
So here is a summary of how to leave money depending on the circumstances:
For the child who has big spending habits and cannot seem to accumulate any assets:
Leave the inheritance in a revocable trust with an independent trustee.
Instruct the trustee to manage the assets for the heir and distribute quarterly income to the heir and distribute principal only in an emergency situation. This way they won't blow it.
For the child with a shaky marriage:
Leave the child their inheritance in a revocable trust and have the trust drafted in order to shelter the assets as non marital property. This way the greedy ex spouse can't touch your hard earned assets.
For the disabled child: Leave the inheritance in a special needs trust that will prevent your child from forfeiting valuable government benefits such as social security income and Medicaid health insurance. This allows the child to inherit your assets and not lose Uncle Sam's support.
For the parent who wants to leave the child money but does not want to create a trust and does not want to worry about managing money posthumously: leave your child an income annuity that lasts for their life or a very long term of years. This will provide a minimum level of monthly income that your child can't squander.
For the parents who feel like their children will be ruined by large inheritance:
Create a family charitable foundation and leave your money to the foundation. Your kids can draw a modest salary for working at the foundation while helping society by distributing foundation assets.
For the parents who don't care what happens: don't do anything. In most cases even if you have no will your remaining assets will ultimately wind up in the hands of your children through a process called intestacy. It may be an expensive cumbersome process for them to inherit your assets but that's their problem.
About Keith Singer: Keith Singer, JD CFP is a popular financial advisor in Florida. For years, Mr. Singer has been teaching investors how to preserve their assets, safely increase their net worth, and create guaranteed income streams. He is the president of Keith Singer Wealth Management and Insured Returns LLC, a Florida company that specializes in guaranteed income and growth strategies. Mr. Singer is a licensed Florida attorney and he has earned the Certified Financial Planner (CFP) designation. He received a B.S in Finance from the Pennsylvania State University and graduated cum laude in 1992 from the University of Miami School of Law.
He has been interviewed and quoted by Money Magazine, Business Week, Financial Advisor Magazine, the Chicago Tribune, Financial Planning Magazine, The Wall Street Journal, U.S. News & World Report and the Investment News, regarding a variety of financial strategies. Mr. Singer also serves as an expert witness in FINRA arbitration proceedings concerning industry conflicts.
Mr. Singer also hosts a weekly radio program called "Prosper! with Keith Singer." On the show Singer explores numerous investment and income opportunities and tries to explain both the risk and the rewards of various opportunities to his audience. "Many of my listeners and all of my clients expect me to do the due diligence for them when it comes to analyzing potential investment opportunities," said Singer.
Mr. Singer's broadcasts air on weekdays at 2-3 PM on WSBR 740am in Boca Raton and on Saturdays at 5 PM on 610 WIOD in South Florida. For more information visit his company website www.singerwealth.com. To interview Keith Singer contact She Got Game Media at (305) 520-9703.
Keith Singer, President of Singer Wealth Management, is registered with and offers securities through Kovack Securities, Inc. Member FINRA/SIPC. 6451 N. Federal Hwy., Ste. 1201, Ft. Lauderdale, FL 954-782-477. Advisory services offered through Argentus Advisors. Singer Wealth Management and Argentus Advisors are not affiliated with Kovack Securities, Inc. or Kovack Advisors, Inc. Keith Singer may discuss/transact business in: CA, CT, FL, GA, MA, MI, NJ, NM, NY, PA, and TX.