NEW YORK (Money magazine) -- Readers to the rescue. Money magazine readers answer your questions.
Question: Is it okay to stipulate in a will how inherited funds may be spent? -- J.M., Location withheld
The readers say
I do not think it's proper to attach strings to an inheritance unless there is a specific need, such as caring for someone who is not able to care for himself. -- Bob Hoffman, Erlanger, Ky.
Yes, you can make any restrictive stipulations you desire in a will. If the beneficiaries don't like it, they can demonstrate their dislike by declining the bequest. -- Alan Brown, Plantation, Fla.
It's better to stick to "I'd like" than "you must." After all, a lot can change within the family over time. A grandparent might want a bequest to pay for her grandchildren's college education, but the funds might be needed for one child's living expenses. Or one of the heirs might be entrepreneurial and decide to go into business instead of to college. -- Eve Hershkowitz, Brielle, N.J.
Yes, but for the sake of family relations, it's better to have a conversation between you and your heirs instead of putting requests in written form. -- G.M., Omaha
No. A will is an instrument to give to those still here after you pass. A gift with stipulations isn't much of a gift. -- Sarah Dizney, Indianapolis
If you truly want to control how a beneficiary spends inherited funds, advance the gift to that individual while you are still alive and offer to pay for something specific. -- M.M., Chicago
No, but you may want to stagger the inheritance so that the recipients get the money gradually as they age. That could help them learn good spending habits. -- Rita Swingle, Athens, Pa.
The experts say
There's nothing wrong with trying to make sure your money goes where you want it to, says Colleen Barney, co-author of "Best Intentions," a guide to estate planning. If you do add stipulations to your will about how your children (or other heirs) should spend the money, make sure to explain why; they'll be more likely to honor your wishes if they understand your reasoning.
Also keep in mind that a will stipulation can't be enforced legally, says estate planning attorney T. Jack Challis. To make absolutely sure that your kids get the money only if they spend it as you wish, you'll need to fund a trust, with an independent trustee (such as a bank or a close friend) controlling the purse strings. But keep in mind that the cost to set up a trust starts at around $1,500 (mostly for the attorney's time), and it's often not worth it for bequests under $100,000, says Challis.
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