Someone may work tirelessly for years or decades to create a fortune or amass a certain amount of assets. Deciding how distribute those assets or fortune to loved ones as an inheritance can be a highly personal and creative endeavor. One father recently made news in Michigan because of the unique and detailed stipulations he placed on his daughters if they want to receive their inheritance early.
The man was a millionaire worth about $37 million. He left behind two daughters and left them each an inheritance of $10 million. The girls can receive the funds at the age of 35 or follow a few guidelines and receive portions of the money earlier.
One stipulation for the girls to get the money early is through marriage. One daughter will get $500,000 for getting married, and her husband has to agree to not seek any of the inheritance. Graduation from college will result in a payout of $750,000 of the inheritance. Also, an essay of how the funds will be used must be approved by trustees. The children can also earn more of the inheritance if they act as caregivers to their mother, and they can also earn some of it based on their income.
It is not uncommon for a parent to create a trust with specific stipulations or terms for getting an inheritance. How specific or unique the terms of an inheritance may be can depend on the Michigan family and the wishes of a parent. If stipulations seem unreasonable or unfair, a beneficiary may challenge those stipulations or challenge a will in general.
Source: New York Post, “Daughters inherit $20M, but there’s a catch“, Ross Toback and Julia Marsh, July 27, 2015