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Estate planning isn’t just about deciding who gets what. It’s about ensuring your loved ones are financially secure in a way that protects them from unnecessary risks. Some beneficiaries need extra consideration—whether it’s due to a disability, poor financial habits, substance abuse issues, or simply being too young to manage an inheritance responsibly. Without proper planning, these individuals may lose access to government benefits, mishandle assets, or face financial exploitation.
If you’re planning an estate in El Paso or Dallas-Fort Worth, working with an estate planning attorney can help you create a plan that secures your family’s future while addressing each beneficiary’s specific needs.
Beneficiaries With Disabilities
Leaving an inheritance to a loved one with a disability requires careful planning. Many individuals with disabilities rely on Supplemental Security Income (SSI) and Medicaid, which have strict income and asset limits. If they receive a direct inheritance, they could lose these essential benefits.
A special needs trust (SNT) is a solution that allows a disabled beneficiary to receive financial support without jeopardizing their eligibility for government aid. There are two primary types:
- First-party special needs trust: This type of trust is Used when the beneficiary already has assets, such as from a legal settlement or inheritance.
- Third-party special needs trust – Created by parents or family members to provide long-term support for a disabled loved one.
A properly structured SNT can ensure that disabled beneficiaries can access funds for housing, medical care, and daily expenses while maintaining their benefits.
Beneficiaries With Poor Money Management Skills
Some beneficiaries are not financially responsible due to inexperience, past reckless spending, or susceptibility to financial scams. In these cases, an outright inheritance could quickly disappear.
Estate planning strategies to protect these beneficiaries include:
- Spendthrift trusts – Prevent the beneficiary from accessing large sums at once and instead distribute funds over time.
- Incentive trusts – Set distribution conditions, such as completing college or maintaining employment.
- Professional trustees – Appointing a responsible trustee or financial institution to oversee the trust can provide additional security.
Families in El Paso often use these estate planning tools to ensure that inheritances are preserved and beneficiaries receive long-term financial stability.
Beneficiaries With Substance Abuse Issues
Leaving an inheritance to a loved one struggling with addiction is challenging. A lump sum of money could worsen their condition, enabling further substance abuse rather than providing financial security.
Estate planning solutions for these situations include:
- Discretionary trusts – Give the trustee full control over how and when funds are distributed.
- Treatment-based incentive trusts – Require the beneficiary to seek rehabilitation or maintain sobriety before receiving money.
- Trustee oversight – Rather than giving the beneficiary direct access to funds, the trustee can pay directly for housing, medical care, and rehabilitation programs.
These strategies allow families to support their loved ones while ensuring that an inheritance does not unintentionally contribute to harmful behavior.
Minor Children and Young Beneficiaries
In Texas, minors cannot legally inherit assets outright. Without a plan, the court may appoint a guardian to manage their inheritance, which can lead to unintended consequences.
To ensure financial security for young beneficiaries:
- Appoint a guardian – Specify who will care for your children if something happens to you.
- Create a trust – Instead of leaving assets outright, establish a trust that a responsible adult can manage.
- Structure distributions – Parents can set age-based payouts instead of allowing full access at 18 (e.g., 25, 30, 35).
Many families in Dallas-Fort Worth choose these estate planning tools to protect their children’s future while allowing flexibility for responsible financial management.
Protecting Beneficiaries in Dallas-Fort Worth
Every family’s situation is unique, and estate planning should reflect each beneficiary’s specific needs. At the Law Office of Carey Thompson, we help clients create customized plans that provide financial security while addressing individual challenges. If you have a loved one who requires special planning considerations, contact our El Paso office today for a confidential consultation.