People who do not have a great deal of money frequently dream about what they would do if they suddenly got a windfall. They think of how they would spend the cash, 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 loan if you won the lottery?”
This creates a problem for individuals who want to leave big inheritances to household members who are not currently individually wealthy.
When you plan to give an inheritance to someone, you typically contemplate that he or she will most likely spend some of that loan to purchase things. If you give somebody a big lump amount, you have no method to avoid that person from investing it all as soon as possible.
There are methods that you can prevent your relatives from wasting their inheritances. This develops a larger inheritance than the giving the very same quantity as a lump amount would.
Ask a knowledgeable estate planning lawyer about setting up a Trust to leave an inheritance for your family members.