You know that your heirs will not necessarily have to work because you’re wealthy enough to leave them assets they could live off of for life. While they may see this as a positive, it actually worries you. You do not want your heirs to become complacent or take their money for granted. You still want them to be motivated and driven, and you believe that all starts with a good education.
The good news is that you can use trusts to dictate how they use your money. You don’t simply have to leave it to them when you pass away. For instance, an educational trust can only be used for costs related to education — tuition, rent, books, etc.
When you set up this account, you guarantee that they’ll have a stable future and you do provide for them, but you do it in a way in which you’re still in control of the money. You still choose how they spend it. If you leave them enough money to go to the University of Michigan for free, you don’t have to worry about them wasting that money. They’ll use, they’ll get a world-class education, and you’ll ensure that they get everything they can out of life, despite your wealth.
It’s best to get these plans in place as soon as you can. It helps your money go farther. It also gives you a chance to talk to your heir about their future plans and explain the ways in which you’ve already set them up for success.
If you want to use trusts or other complex estate planning options, take the time to learn everything you can about the process.