From our “Ask a Question” mailbag: I love my partner, but she is terrible with money. If I leave her an inheritance, it will be spent quickly and she will be left with nothing. How do I leave her an inheritance but protect it for her?
Recognizing your partner’s inability to handle money allows you to set up an estate plan that can help make sure that your partner will always have enough money. There are many ways to set up a trust for his benefit. The best option will depend on what type of assets you have and how much flexibility you wish to give the Trustee.
The simplest plan is to set up a trust in your will that gives your partner a set monthly allowance, based either on a set dollar amount or on a percentage of the trust assets. This makes your Trustee’s job easier as there is no discretion, only a check to write. The Trustee, who can be a professional, friend or family member, will manage the trust assets.
I suggest that we have a free consultation where I can review your assets and goals and then give you some suggestions as to trust terms that will satisfy your given situation.