A fool and his money will go separate ways. So it is with many an inheritance. People often fear that leaving large sums of money to their relatives will result in those relatives blowing the money on things they do not need.
A recent case in the United Kingdom demonstrates that this is not an unfounded fear.
Euan MacAndrew, a 24-year-old, was left an inheritance by his grandfather that amounted to approximately one-hundred thousand pounds. MacAndrew then proceeded to do what was probably the last thing his grandfather would have wanted him to do with that inheritance. MacAndrew wasted it all on cars, clothes and drugs.
Eventually, MacAndrew was arrested for selling cocaine. He might have turned to dealing drugs to continue the lifestyle that he began after receiving the inheritance and wasting it all. The full story was recently reported in The Mirrorin an article titled“Lad, 24, blew 100K inheritance on cars, clothes and drugs before being busted for dealing cocaine.” Unfortunately, this is something that unfortunately happens all too often.
People who do not have a lot of wealth of their own often waste it when they come into it. When they have not earned the wealth for themselves, they do not always understand the true value of it and how difficult wealth can be to maintain.
The good news is that this is something that can be prevented. You do not have to give an inheritance to a relative as a lump sum of cash. You can use trusts or other legal instruments to distribute money over time or on an as needed basis.
If you think your relatives might waste their inheritances on wine (or cocaine), women and song, then talk to an experienced estate planning attorney about how you can best prevent that from happening in your family.
Reference: The Mirror (December 19, 2014) “Lad, 24, blew 100K inheritance on cars, clothes and drugs before being busted for dealing cocaine“