My son is really financially irresponsible, but I want to leave him and my daughter an equal amount. How can I make sure he doesn't waste the money?

Clara has substantial assets and wants to leave Hillary and Hugh an equal amount of money, but she’s worried that Hugh is going to waste his share. So, what can she do to help protect the funds?

Clara can use estate planning tools to save Hugh from himself

First, Clara has to realize she doesn’t have to treat Hillary and Hugh exactly the same when making her plans.

“Fair does not always mean identical,” Rachel Schromen, an estate planning attorney at Schromen Law, told Moneywise. “You can leave your children equal amounts while creating different structures that reflect their individual needs. This is not about punishing one child. It’s about planning for the appropriate support and structure based on the child’s unique needs and life circumstances.”

Schromen suggested that Clara use an estate planning tool that gives her more control over when and how Hugh gets the funds.

“Rather than giving your son his entire inheritance outright, you can direct that his share be held in trust and managed by a trustee,” Schromen suggested. “The trustee can make distributions for things like health, education, maintenance and support while protecting the remaining funds from impulsive or irresponsible spending.”

Somita Basu, founder of Norton Basu, LLP and an adjunct professor at Purdue Global Law School, agreed, telling Moneywise, “In the situation where one child is irresponsible with money, the best option is to leave that irresponsible child’s inheritance via a trust. A trust can control under what circumstances your child can access funds and what the funds are to be used for.”

For example, as Schromen explained, Clara can customize the trust however she wants, from limiting how much Hugh can access at a time to requiring him to meet certain objectives before he inherits.

“A spendthrift provision protects the share from creditors,” Lisa G. McCurdy, founder of The Wealth Counselor, explained to Moneywise. “The trustee can pay expenses directly rather than handing over cash. Distributions can also be staggered over time, allowing a beneficiary to become familiar with navigating complex financial decisions.”