Individuals who do not have a great deal of money frequently dream about what they would do if they suddenly received a windfall. They consider how they would invest the cash, that is and not about how they would manage it. There is a reason the old question is “What would you purchase if you won the lottery,” and not, “How would you manage your cash if you won the lottery?”
This creates an issue for individuals who desire to leave big inheritances to household members who are not currently independently wealthy.
When you plan to offer an inheritance to someone, you normally consider that he or she will most likely invest some of that money to buy things. If you give someone a large swelling sum, you have no way to prevent that individual from investing it all as quickly as possible.
There are ways that you can prevent your relatives from losing their inheritances. This produces a bigger inheritance than the providing the same quantity as a lump sum would.
Ask a knowledgeable estate planning lawyer about setting up a Trust to leave an inheritance for your family members.