People who do not have a lot of money frequently dream about what they would do if they suddenly received a windfall. They think about how they would spend the money, that is and not about how they would handle it. There is a factor the old question is “What would you purchase if you won the lottery,” and not, “How would you manage your cash if you won the lottery?”
This creates a concern for individuals who want to leave large inheritances to relative who are not already separately wealthy.
When you plan to offer an inheritance to somebody, you normally contemplate that she or he will most likely invest some of that loan to purchase things. Usually you likewise plan that the cash will last long enough to serve as a consistent source of earnings. If you give someone a large lump amount, you have no way to prevent that individual from investing it all as soon as possible.
There are ways that you can prevent your loved ones from squandering their inheritances. Trusts, for instance, can be utilized to distribute regular monthly amounts to the beneficiaries. The other assets of the Trust can be invested to make interest. This produces a bigger inheritance than the giving the same quantity as a lump sum would.
Ask an experienced estate planning lawyer about establishing a Trust to leave an inheritance for your family members.