Faith, Ledyard & Faith, PLC
COVID-19 NOTIFICATION: To protect your safety and the safety of our staff, in response to the threat of COVID-19, we are offering the option to connect with us via telephone, email and video-conferencing. Our staff are fully operational. Please call or email us to discuss your options.
A Full-Service Law Firm Serving the West Valley and Greater Phoenix for More Than 40 Years
PA Image
Real Estate Law
PA Image
Personal Injury
PA Image
Civil Litigation
Construction Law
PA Image
Bankruptcy
PA Image
Employment Law
PA Image
Estate Planning
PA Image
Debt Collection
PA Image
Government Law
PA Image
Criminal Defense
PA Image
Business And
Commercial Law
PA Image
En Español

It’s hard to restrict spending, even with a trust

| Oct 5, 2019 | Trusts |

Say you have an heir who may spend your money on things that you do not support. Can you create a trust that restricts how they can use their inheritance?

Possibly. For instance, this happened with one woman who thought her son may give money to political causes that she did not support. She wanted to make sure her money — after it was no longer hers — did not go to these causes.

Technically, she could put a stipulation in a trust saying that the money can’t go to a political party or a similar cause, but the court may overturn that if the heir decided to challenge it. They may agree that he has freedom of expression that even his now-deceased parents cannot restrict.

To get around it, one option was for her to take a positive approach, saying what the money could go to. For instance, if her son was in college, an educational trust could pay for his tuition. This doesn’t prohibit donating, but instead, focuses on permitting educational uses. Other examples include paying a mortgage or putting grandchildren in school.

Even if she did that, though, money may still go to his causes. Say his mortgage would cost him $3,000 per month or $36,000 during the year. She could leave him $36,000 to apply to those mortgage payments. Hopefully, he had already budgeted to make those payments, though. Since he didn’t have to, he could simply pay the mortgage with her money and use his own $36,000, which he no longer needed, to give to political causes.

As you can see, using trusts gets very complicated. Make sure you know all the legal options you have.

Lead Counsel Rated LC
Paul Faith David Ledyard
Distinguished AV | Peer Review Rated | LexisNexis Martindale-Hubbell | For Ethical Standards & Legal Ability
Lead Counsel Rated LC
Lead Counsel Rated LC
FindLaw Network

Stay Connected With Us