A big worry for many individuals while planning their estate is the ability of would be heirs and beneficiaries to properly manage any property passed down to them. The most common solution to this problem has been to establish conditions on the use of the property or create a trust to allow management by more prudent individuals. However, letting the heir apparent manage a small portion of their legacy in advance of death may give the client a better idea of what proper protection steps should be taken. Not only may this prove the suspect beneficiary reliable, but it may also expose those that might have less money management skill than appears on the surface.
See Brian Luster, Why Giving Your Heirs A Test Run With Your Money Makes Sense, Forbes, May 12, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
