Individuals who do not have a great deal of loan typically dream about what they would do if they suddenly got a windfall. They think about how they would invest the cash, that is and not about how they would manage it. There is a reason the old question is “What would you buy if you won the lottery game,” and not, “How would you handle your money if you won the lotto?”
This creates an issue for individuals who desire to leave big inheritances to family members who are not currently separately wealthy.
When you plan to provide an inheritance to someone, you usually consider that he or she will most likely spend some of that cash to purchase things. If you give someone a large swelling sum, you have no way to prevent that person from investing it all as soon as possible.
There are ways that you can prevent your loved ones from squandering their inheritances. This creates a larger inheritance than the giving the very same quantity as a lump amount would.
Ask a skilled estate planning attorney about setting up a Trust to leave an inheritance for your family members.