There are an endless amount of possibilities when it comes to distributing your wealth after death. Placing money into a trust is one of the easiest ways in which a person can retain control over how the money is spent even after they have gone. According to a recent survey about inheritance, control may not be such a bad idea for some.
According to the survey, people in Cape Coral, Florida, and all across the nation on average save only half of their inheritances. The other half is almost immediately spent either through personal purchases, donations or even losses such as gambling.
A total of 7,500 people participated in the survey conducted by the Ohio State University. The survey covered data from over three decades, beginning in 1979 with the National Longitudinal Survey of Youth. Polls were taken 23 times since that year and combined to help researchers come to a conclusion.
Researchers were unbiased in collecting and interpreting the data, but they did hope that the survey would help motivate people to save more and spend less. If you agree with this sentiment, you can include terms in a trust that help control how the money will be spent and distributed. If you want the money to go towards a grandchild's education, you can structure the terms to require that result.
Whether you want to have complete control over your estate or none at all, an attorney experienced in estate planning can help ensure that your intent is followed. An experienced attorney will not only help make the plan you want but spot issues that could potentially affect how your estate is handled after your death.
Source: EmpowHER, "Americans Only Save Half Of Their Inheritances," Bailey Mosier, March 20, 2012