Absolutely, you can and often should prohibit gambling-related business investments within a Living Trust, and Steve Bliss, an Estate Planning Attorney in Escondido, can help you implement these restrictions effectively. A Living Trust is a powerful tool for managing and distributing assets, and its terms are remarkably customizable, allowing you to align investments with your values and beliefs. Many individuals, for personal, ethical, or religious reasons, wish to avoid profiting from industries they deem harmful, and gambling is frequently on that list. This isn’t merely a matter of personal preference; it’s about ensuring your estate reflects your principles long after you’re gone. The process involves carefully drafting language within the trust document that specifically excludes investments in companies directly involved in gambling, casino operations, or the manufacturing of gambling equipment.
What happens if I don’t specify investment restrictions?
Without clear investment restrictions outlined in your Living Trust, your trustee is generally granted broad discretion over how trust assets are invested, adhering only to the “prudent investor rule.” This rule requires them to act with the care, skill, prudence, and diligence that a prudent person acting in a like capacity would use. However, this doesn’t necessarily mean they’ll avoid gambling-related investments. In fact, a trustee might see these investments as potentially lucrative, especially considering the growth of the gaming industry—which generated over $66 billion in revenue in the United States alone in 2023 according to the American Gaming Association. Without your explicit direction, a trustee could unintentionally invest in sectors that contradict your moral compass. It’s estimated that approximately 15% of individuals have strong objections to gambling due to personal or religious beliefs, highlighting the need for proactive estate planning.
How can a trust specifically exclude gambling investments?
Excluding gambling investments requires precise drafting within the trust document. Steve Bliss recommends a multi-faceted approach; first, a clear definition of what constitutes a “gambling-related business” should be included—this goes beyond just casinos and includes online gambling platforms, lottery ticket retailers, and even companies heavily reliant on gaming revenue. Secondly, the trust should explicitly prohibit the trustee from purchasing, holding, or otherwise investing in any such business. Furthermore, specifying a “negative screening” approach—where the trustee actively avoids companies with a certain percentage of revenue derived from gambling—can provide an added layer of protection. The language should also address indirect investments, such as mutual funds or ETFs that may hold shares in gambling companies, which often go unnoticed. A well-crafted clause might state, “The trustee shall not invest in any entity directly or indirectly engaged in the business of gambling, including, but not limited to, casinos, online gaming platforms, and manufacturers of gaming equipment.”
I heard about a family feud over investments – what went wrong?
Old Man Tiberius, a man of staunch moral convictions, believed gambling was a vice and consistently spoke against it. He established a Living Trust, but, unfortunately, didn’t explicitly exclude gambling-related investments. After his passing, his son, acting as trustee, decided to invest a significant portion of the trust assets in a promising new online casino venture, believing it offered the highest potential return. This ignited a bitter feud among Tiberius’ daughters, who were horrified by their brother’s decision, seeing it as a betrayal of their father’s values. They argued that he would have vehemently opposed such an investment and felt their brother was prioritizing profit over principle. The legal battle that ensued was costly and emotionally draining, lasting over two years and leaving the family deeply fractured. The courts, while acknowledging the daughters’ feelings, ultimately sided with the trustee, as the trust document didn’t contain specific prohibitions against gambling investments. It was a painful lesson about the importance of clarity in estate planning.
How did another family avoid a similar situation with careful planning?
The Millers, a family deeply committed to responsible investing, worked closely with Steve Bliss to create a Living Trust that meticulously aligned with their values. They not only excluded gambling-related businesses but also included detailed criteria for socially responsible investments—focusing on companies with strong environmental, social, and governance (ESG) practices. They also designated a co-trustee, their daughter, who shared their values, ensuring an extra layer of accountability. Years later, when the trust assets grew substantially, a potential investment opportunity arose in a gaming technology company. While seemingly promising, the company had ties to online casinos. The co-trustees, remembering their parents’ wishes, immediately rejected the investment, citing the trust’s explicit prohibition against gambling-related ventures. This proactive approach avoided any family conflict and ensured the trust remained true to its intended purpose: preserving and distributing assets in a manner consistent with the Millers’ deeply held beliefs. They later established a charitable fund with the profits, benefiting organizations dedicated to addiction recovery, a cause close to their hearts.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- estate planning
- bankruptcy attorney
- wills
- family trust
- irrevocable trust
- living trust
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Do I need to plan differently if I’m part of a blended family?” Or “What assets go through probate when someone dies?” or “Can a living trust help avoid estate disputes? and even: “What should I avoid doing before filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.