Estate plans should not be considered once and then left alone. It is wise to go over the information and documents in a plan to determine whether anything needs to be added or removed from it. In some cases, Arkansas residents may feel that their initial plans are too simple and may find themselves wanting to add trusts to those plans.
Trusts can have numerous uses when it comes to estate planning. For some, setting up testamentary trusts could be a viable option. These trusts take effect after a person’s passing and can be set up through a will or a living trust. The information in the will or trust can indicate which assets should transfer to the testamentary trust after the person’s passing, who the beneficiaries are and how the distribution should occur.
Testamentary trusts can be particularly helpful for individuals who may have minor children who cannot directly inherit assets, loved ones with special needs who rely on government benefits, loved ones with addiction problems or family members who are irresponsible with money. The trust can indicate when the assets can be distributed, and the trustee is responsible for ensuring that those instructions are followed. As a result, a spendthrift heir could receive a little bit of the inheritance at a time rather than receiving it all at once and spending it unwisely.
Rather than completely disinheriting an irresponsible heir or risking the benefits of a special needs loved one, Arkansas residents may instead want to consider alternatives. Trusts can help find ways to continue helping loved ones without causing more harm than good. If individuals are interested in this type of trust, they may want to gain additional information.