In 2015, NPR aired a segment on issues facing women in retirement. One of the points made is the lack of saving by many women combined with a longer life expectancy. Added to that is a complication of our mobile society: although years ago the children often took care of their parents, the more we all move about in the country, the harder that is to make a reality. Some adult children make up that gap and provide financial support for their parents, supplementing the parents' lack of income or savings. A trust can often best protect that support.
Children supporting their parents is nothing new. But as our society continues to live longer and longer, that support might need to stretch for more time. Careful consideration should be given regarding how to continue that support in the event of the untimely death of the child before the parent.
A sudden influx of funds can be risky for some. If the parent is receiving assistance or benefits, an inheritance of cash could end those benefits. If the adult child's goal was to provide supplemental support or extra comfort to the parents while preserving the bulk of the wealth for the next generation, this might fail completely without careful planning. Added to these considerations can be the risks the elderly face as targets of scams. Leaving that inheritance in a trust instead can offer protection.
One way to help with these issues is by using a trust to provide financial support for an elderly relative or friend while also providing some protection over the funds, thus giving some peace of mind. Money left in trust can be protected from scams, and using a trust helps preserve funds for the next generation too.
An estate planning attorney can offer guidance, and your individual circumstances will help guide which type of trust would work best in your situation. To talk about your estate-planning goals, call an estate planning attorney to discuss your concerns and develop an estate plan that protects your assets and benefits your family.
© 2020 McCreary Law Office, PLLC