Reason #32 You Need an Estate Plan

Your Mom Can't Manage Money

People often come into my office and promptly inform me that while they need a will and power of attorney, they do not need a trust. I always ask them to give me some time to go through their situation and explain how different estate planning tools work before I recommend a trust. Only after we start talking about assets, family situation, or a desired distribution scheme (how their money will be divided upon death), can I really say whether or not a trust would be useful.
Recently, I had a client (let’s call her "Jacqueline") come in saying she didn’t need or want a trust. But, when she realized that her mom would receive a significant amount of money outright if Jacqueline died before Mom, Jacqueline said, “Oh no, that can’t happen. My mom cannot handle that kind of money. I love her, but she is terrible with money and cannot have access to it.” In addition, Mom has other children to whom Jacqueline does not want her money going. Here, especially because Jacqueline has significant assets, a trust would be an excellent planning tool. A trust would enable Mom's inheritance to be managed by a trustee, and it easily provides for Mom’s inheritance to pass to beneficiaries other than Jacqueline's siblings upon Mom's death.
The estate planning process is intimidating, and it is natural to try to control the process. Rest assured, we will take you step by step to ensure you get the plan that’s right for you. Call our office at (248) 477-6300 to get started.