Can you force a grandchild to take a drug test in order to receive an inheritance? Insist your heirs use trust funds only for tuition at your alma mater? Make sure your wife's future husbands can't run through money you worked hard to earn? In many cases, the answer is yes—you can, my law school professor called it "control from the grave."
Leaving an inheritance, a bequest, or a charitable donation is serious business. However, if you want to continue your control over the use and enjoyment of your transferred wealth after your departure, you must plan ahead.
Recently, The Wall Street Journal considered the notion of goal-driven bequests in an article titled “How to Control Your Heirs From the Grave.” Good news: there are steps you can take now to guarantee that certain preconditions are met before inherited assets can be released or used.
So, what kind of “guarantees” do you want to ensure after you’re gone? That depends on you, your family, and what is of true importance to you. Maybe you want to curtail irresponsibility by calling for a drug test before receipt of an inheritance, or encourage responsibility by requiring a college degree.
Nevertheless, there are limits to the guarantees you can secure and the original article delves into some of them. Competent legal counsel should be secured to help you navigate the wealth transfer rapids.
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Reference: The Wall Street Journal (August 10, 2012) “How to Control Your Heirs From the Grave”