If you have ever watched Gordon Ramsay on TV, you know that he can be brutally honest. Turns out, his blunt demeanor influences his estate planning, too. Ramsay does not want his children to inherit his valuable estate.
While this might sound off-putting, it is worth taking a look at your estate planning strategy and ensuring your assets are going to be disbursed how you intended. Keep reading for some smart estate planning tips.
1. Appoint a trustee
If you are wary of probate court and potential litigation between family members, consider administering your assets through a trust. Leaving your assets in a trust and naming a responsible trustee to control them can give you peace of mind. Whoever you pick will be responsible for providing an accounting, investing assets and distributing assets to your beneficiaries.
2. Give out money in installments
Your estate does not have to be completely disbursed immediately upon your death. With a trust, you can choose to give beneficiaries a little bit every few years instead of in a lump sum. If you worry about any of your children wasting away their inheritances, this might be a good strategy.
3. Establish incentives
If you also worry about beneficiaries being destructive, you can create an incentivized trust. With this type of trust, you can set guidelines for how payments are made. For example, payments can go out to a child if he or she gets a job, goes to college or completes a rehab program.
It is easy to feel overwhelmed with worry about your estate. While you might not need to lock up your assets for good, you might consider putting limits on how they are distributed. Your estate is full of your hard-earned wealth and you deserve to be the “master chef” of determining its future. If you need help figuring out what to do with your money and property, contact an estate planning attorney.