Why an Outright Inheritance Can Backfire and How a Trust Can Protect Your Family
When people think about estate planning, they often picture a simple idea: “When I pass away, my children get the inheritance.” That sounds clean and fair—but in real life, an outright distribution can create problems you never intended. In a recent video, an estate planning attorney shares a story that captures this perfectly. A Real Example: “If I give her $10, she’ll spend $20.” A client in his late 80s created a trust for his daughter, who was in her 40s. But the trust had a surprising rule: she would not receive her inheritance until she turned 65. That’s a long time. If he passed away immediately, she could wait 20–25 years before receiving anything. When asked why, the client explained it simply: “If I give her $10, she’s going to spend $20.” This wasn’t a parent being cruel. This was a parent being honest about who his child was with money—and protecting her accordingly. And that’s one of the most important truths in estate planning: You know your family bette...