Tuesday, May 22, 2012

Prince William to Inherit Under Diana's Will

Odd that Prince William appears on my blog twice in one month, but so goes life!  Recent media coverage indicates that on June 21st Prince William will turn 30 and be eligible for up to a $16 million inheritance under his mother, Diana's, will.  The will also allows him to edit the will to take less and give more to his younger brother Harry.

The edit idea is an odd one, and not one I've seen in my practice.  The point I want to focus on is that the distribution occurs when William, the elder child, turns 30.  When I work with clients the terms of the will usually place funds in a trust.  And those funds are controlled by a trustee until the youngest living child reaches a certain age.  Why?

One, it guarantees the pool of funds is available until the youngest reaches a certain point in life.  And two, if distributions are made when the elder hits a certain age, the distribution may be unequal based on stock market performance.  For example, if a child inherited in 2007 and took half the pot, and his/her younger sibling got the remainder in 2010, there would be a significant difference due to market fluctuation.

Remember, a blog is not legal advice. Thanks for reading, and be certain to consult an attorney in your state for counsel specific to your situation.

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