nheriting in trust can mean a lot of different things, but usually comes with benefits that are not available otherwise. Consider establishing an estate plan so your beneficiaries can inherit in trust.
You may know you want to give an inheritance to your heirs, but do you know the right way to do it? Let’s explore a couple options.
Property that is given to an heir by will or through automatic means, such as a pay on death account or life insurance, is given to the heir or beneficiary outright. As soon as he or she gets it, all of the money can be spent or taken away. It is treated just like any other assets that the heir has. However, when something is left in trust, the assets can be protected. A recent article in the Green Bay Press Gazette, titledin “Inheriting in trust can protect beneficiary,” listed some of the things a trust can protect against.
A Trust Can Help Prevent
Bankruptcy
Many trusts do not count as assets during bankruptcy.
Divorce
Trusts can be structured in a way such that an ex-spouse does not have any right to principle in the trust.
Lawsuits
Trust assets are normally not subject to legal judgments.
Bad Decisions
Trusts can be set up to only allow distributions for specific purposes, such as educational and medical expenses.
Young Age
Trusts can be used to only allow the beneficiary to receive the bulk of the inheritance when he or she is old enough to spend it wisely.
The list is not all-inclusive. The bottom line is that a trust provides far more potential asset protection than an outright inheritance. Depending upon the needs of your family, an estate planning attorney can create a trust for you that protects assets and preserves them for your beneficiaries.
Do You Need To Speak With An Attorney About Estate Planning?
If you need to speak with an experienced estate planning lawyer please contact us online or call us directly at 800.756.5596 to first register for one of our free, informative seminars. Your attendance will qualify you for a special discount for our estate planning services should you decide to make a free appointment at the conclusion of the seminar and choose to proceed with us. We proudly serve clients throughout California with offices in Torrance, Newport Beach, Orange, Woodland Hills and Pasadena.
As an estate planning enthusiast with a demonstrated depth of knowledge in the field, I understand the critical importance of inheritance strategies and the nuanced benefits that come with inheriting in trust. This article touches upon several key concepts integral to estate planning and the protective nature of trusts. Allow me to break down the key concepts discussed in the article and elaborate on each:
1. Inheriting in Trust
Inheriting in trust involves leaving assets to heirs in a trust rather than outright. This strategic approach comes with distinct advantages over direct inheritance, offering a layer of protection and control over the assets.
2. Estate Planning
Establishing an estate plan is emphasized in the article as a crucial step in ensuring that beneficiaries can inherit in trust. An estate plan is a comprehensive strategy that outlines how an individual's assets will be managed, distributed, and protected after their passing.
3. Types of Inheritance
The article mentions different means of inheritance, including wills, pay on death accounts, and life insurance. Understanding these various methods is essential for individuals looking to devise a comprehensive estate plan tailored to their specific needs.
4. Asset Protection
Trusts are highlighted as effective tools for asset protection. The article lists scenarios where trusts can safeguard assets from potential threats such as bankruptcy, divorce, lawsuits, and poor financial decisions.
5. Bankruptcy Protection
One notable benefit of inheriting in trust is the potential exemption of trust assets during bankruptcy proceedings. This safeguard ensures that the assets set aside for beneficiaries remain protected in times of financial distress.
6. Divorce Protection
Trusts can be structured to shield assets from the claims of ex-spouses, ensuring that the intended beneficiaries retain control over their inheritance even in the event of a divorce.
7. Lawsuit Protection
Trust assets are generally not subject to legal judgments, providing an additional layer of protection against potential lawsuits and creditors.
8. Controlled Distributions
Trusts can be designed to allow controlled distributions for specific purposes, such as educational and medical expenses. This ensures that the inherited assets are utilized responsibly and in alignment with the grantor's intentions.
9. Age Restrictions
The article suggests that trusts can impose age restrictions on the beneficiaries, allowing them to receive the bulk of the inheritance only when they are deemed mature enough to handle it responsibly.
10. Estate Planning Attorney
The importance of consulting with an estate planning attorney is emphasized. These professionals can tailor trusts to meet the specific needs of families, providing personalized solutions for asset protection and preservation.
In conclusion, the article underscores the nuanced benefits of inheriting in trust and the necessity of a well-crafted estate plan. The expertise of an estate planning attorney is crucial in navigating the complexities of this process and ensuring the protection of assets for future generations.
