Creating a successful inheritance trust is not easy. In some situations even when a family believes that they have created a well-written inheritance trust, they have failed to address a number of complexities including those involving incompetency. This article reviews some of the elements that should be included in an inheritance trust.
# 1 – Appropriate Beneficiary Designations
Appropriate beneficiary designations are a vital part of trusts. Inheritance trusts are created so assets can be passed to a designated beneficiary during that individual’s life and following the individual’s death to any of the person’s children. Additionally, good inheritance trusts are written with the understanding that a situation might arise where a beneficiary is temporarily not able to serve as a trustee.