My children named William and Patricia will inherit our $1 million estate, but William is financially irresponsible. William has a history of racking up credit card debt and then declaring bankruptcy. We are concerned that if we leave the full inheritance to him, he will squander it away.
William is currently employed, but his job is unstable and does not provide health insurance.
Patricia is a stay-at-home mom with three young children. She is married to a wonderful man who has a good job with health insurance. They are currently living in our home, and we would like for them to be able to keep the house after we are gone.
We have decided to set up a trust for William with the inheritance. The trustee will be able to distribute the funds to him as they see fit, and we hope that this will help him be more responsible with the money. The trust will give him a monthly allowance to help cover his living expenses. The remainder of the inheritance will be held in trust until he is 55 years old.
As for Patricia, we are leaving the house to her outright. We know that she will take good care of it and use it to provide a stable home for her family.
We have also set up life insurance policies so that the inheritance can be used to pay off any debts or expenses if either of our children die before us.
We feel confident that this plan will provide for our children and allow them to have what they need after we are gone.
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