One of the most important questions for any parent is: How should I leave everything I own to my children?? Every situation is different and what is right for one family may not work well for others but some of the things we should think about are:
* What if my son or daughter become instantly rich at age 18?
* What if one of my children experiences problems with creditors?
* What if my son or daughter gets sued?
* What if one of my children files bankruptcy?
* What if one of my children is receiving needs based governmental benefits or has special needs?
* What if one of my children marries an “Evil Spouse?”
There are a number of other similar scenarios but each one requires special planning and consideration in order to protect your assets and keep them from falling into the hands of a third party after your death.
The establishment of a lifetime or testamentary Children’s Trust provides an opportunity to ensure that what you have worked for is passed on to your children and protected from an Evil Spouse or third party creditor. In addition, you can name a trustee to handle the assets in the Children’s Trust and ensure that the income and principal is paid out for the benefit of your children and protected from third party claims. This kind of trust can easily be structured to obtain maximum asset protection.
An irrevocable Children’s Trust will include your instructions for the handling of assets in the trust and will also identify a trustee to manage those assets for the benefit of your beneficiaries. When done correctly, they can protect an inheritance from the claims of an “Evil Spouse,” lawsuits, bankruptcy, personal injury claims and even the IRS. They can also protect your children from spend-thrifting and incentive provisions can be included to assist in obtaining legacy objectives.
In order to discover how you can protect your inheritance from predators and creditors, schedule a meeting with a qualified estate planning attorney to learn more about the opportunities and benefits of lifetime and legacy planning.