21st Mar 2013
You’ve worked hard to amass a fortune and build an estate. You are astute enough to realize that you won’t live forever. Hence, you contact an experienced estate planning attorney from Orange County to help you execute your will or living trust. You want to make sure your assets are transferred properly to your loved ones when you pass away. But then one thought bedevils you: What if my heirs fritter away their inheritance in wasteful living? You don’t want to leave oodles of cash or assets to your heirs only to have them squander these away. What you have worked hard for years may be dissipated in a few months. Heaven forbid! But, yes, such a scenario can happen. But can such a scenario also be prevented?
Another scenario is that your heirs may be judicious enough when it comes to their inheritance. But having inherited a fortune, your heirs are happy to live off their inheritance. . They spend their years in wine, women and the good life, yet they manage to save enough to stretch their inheritance for their entire life. However, they live a life of mediocrity. What you had in mind was for them to follow your footsteps in running and expanding your business conglomerate. Could your estate planning document motivate them to do so?
The good news is “yes” to both scenarios. Your will or living trust may include what is known as an “incentive provision”. With such a stipulation, your estate planning document may state that they can receive a certain amount if their income attains a certain level. Your will or living trust then encourages hard work. Your document may also provide seed money for a budding entrepreneur provided the heir has a viable business plan. You may also set spending limits on the proceeds for your heirs.
You can actually tailor-fit your will or living trust so that you can still literally control your heirs’ lives when you are in the Great Beyond. Please remember that you have to avail of the services of an estate planning attorney from Orange County to get expert advice. Inserting such provisions does have its limits. Your provisions must not run counter to public policy. Take note that your document cannot encourage divorce, discriminate against certain groups and compel people to do a crime. Of course provisions that are ambiguous and subject to contests are also not acceptable.
So, if you are worried that your hard-earned wealth will just be frittered away by your heirs, worry no more. Your estate planning document can be drafted in such a way as to motivate your heirs to act in more productive ways. Do not forget to hire an experience estate planning attorney though. In Orange County and elsewhere in California, a lawyer well-versed in estate planning laws will help you include provisions that can help fulfill your wishes since these provisions are specific, clear and within the bounds of California law.