The question of restricting the resale of inherited assets is a complex one, frequently encountered by estate planning attorneys like Steve Bliss in Wildomar. While absolute prohibitions are difficult to enforce, strategic planning within an estate plan can significantly influence when and how beneficiaries can liquidate assets. It’s less about a complete ‘ban’ and more about creating structures that incentivize long-term preservation and discourage immediate resale, aligning with the grantor’s wishes. Approximately 60% of estate planning clients express concerns about preserving family wealth across generations, indicating a widespread desire for control beyond the initial distribution.
What are the limitations of simply stating a ‘no resale’ clause?
A straightforward clause prohibiting resale is generally unenforceable. Courts prioritize the right of beneficiaries to enjoy and manage their inheritance. Restrictions on alienation – the ability to transfer ownership – are disfavored in most jurisdictions. However, this doesn’t mean all control is lost. The key lies in utilizing tools like trusts. A trust allows the grantor (the person creating the trust) to define the terms of asset distribution, including limitations on when or how beneficiaries can access the funds or sell the assets. This is especially crucial considering that, according to a recent study, roughly 70% of inherited wealth is dissipated by the second generation.
How can a trust help me control the timing of asset sales?
A well-drafted trust can establish a ‘spendthrift’ clause, preventing beneficiaries from assigning their interest in the trust to creditors. More importantly, it can dictate a phased distribution schedule. Instead of a lump-sum inheritance, assets can be distributed over time, preventing a rush to liquidate for immediate needs or impulsive decisions. For example, a trust might distribute income annually while holding the principal for a specified period, or it can require a certain time to pass before specific assets – like a family business – can be sold. I once consulted with a client, old Mr. Abernathy, who passionately wanted to preserve his antique car collection. He established a trust that allowed his children to enjoy the cars but prohibited their sale for 25 years, ensuring the collection remained intact for future generations.
What happened when a client didn’t plan for resale restrictions?
I recall a case where a client, Mrs. Davison, failed to include any resale restrictions in her estate plan. She left her successful bakery to her two sons. While she envisioned them continuing the family business, one son immediately saw an opportunity to sell the valuable property for a quick profit. He disregarded his brother’s wishes and the sentimental value of the bakery, putting it on the market before the ink was even dry on the inheritance paperwork. This led to a bitter family feud and the loss of a beloved community institution. Had Mrs. Davison utilized a trust with a provision requiring the business to operate for a certain period or granting the other brother a right of first refusal, this outcome could have been avoided. It was a sad example of how a lack of foresight could unravel years of hard work and familial harmony.
How did a trust save the day for the Miller family?
Fortunately, I’ve also seen how effective trusts can be. The Miller family owned a large ranch, and Mr. Miller was deeply concerned about it being sold off by future generations. He established a trust that allowed his grandchildren to enjoy the ranch but stipulated that it could only be sold with unanimous consent from a family council. Years later, when financial hardship struck one of the grandchildren, the family council convened. Instead of authorizing the sale, they collaboratively developed a plan to generate income from the ranch through sustainable tourism, preserving both the asset and the family’s heritage. This demonstrates how proactive estate planning, particularly through trusts with carefully crafted restrictions, can safeguard family wealth and values for generations to come. It’s not about control for control’s sake, but about ensuring the grantor’s vision endures.
<\strong>
About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | estate planning attorney near me |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
>
Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How do I make sure my digital assets are included in my estate plan?” Or “Can I speed up the probate process?” or “How do I update my trust if my situation changes? and even: “Is bankruptcy a good idea for small business owners?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.