One of the greatest gifts a parent can give a child is an asset protected inheritance trust – but what does that mean, exactly? And how does this higher level of protection work? Does this ‘upgrade’ come as an added expense?
When assets are given outright to a child, those assets are immediately exposed to ‘creditors and predators’. You may feel your child is responsible and therefore, will be able to handle an influx of funds coming from an inheritance, but consider how things would change quickly if any of the following were to happen:
- What if your son or daughter ever gets divorced, and their spouse files a claim to their half of the inheritance?
- What if your beneficiary falls into debt and creditors claim the inheritance?
- How about if bankruptcy due to unforeseen circumstances becomes a necessity in the future? An entire inheritance could be lost in the process!
- What about future lawsuits? Being personally or professionally liable for an accident can expose an inheritance to the one suing your family member.
- What happens when age or an illness qualify a beneficiary for governmental aid, but only AFTER the inheritance is exhausted?
More and more, it is becoming almost certain that beneficiaries will experience at least one of these scenarios in their lifetime, putting their inheritance at potential risk of being completely lost.
At Celaya Law, we believe ingoing the extra mile, and taking the time needed to build in legal protections to your plans. This added feature comes at NO extra cost, because we want to take every step possible to ensure our client’s wishes are carried out in the fullest.
