| Inheritance Protection Trusts |
In an effort to help protect the inheritance left to your children, we have developed the Inheritance Protection Trust. This is a variation of a typical Living Trust, however, we have modified certain provisions to protect assets left to minor children.
The typical living trust will leave assets to minor children and have these assets managed by a designated Trustee. Once the children reach the required age (ex.: 25 years old) the Trustee will then pay the remaining trust funds to the children. The children then own the trust funds and it becomes one of their assets. As a result, the funds are then vulnerable to creditors of the child. Also, if the child later marries, the funds can become property of the new spouse and can be taken in the event of a divorce.
With our Inheritance Protection Trust, when the child reaches the required age, rather than the Trustee tansferring the trust funds to the child outright and ending the trust, instead, the Trustee steps down and the child assumes the role of the Trustee and the trust continues. The child/trustee then has the power to use the funds for herself and/or her own children (your grandchildren). The child/trustee keeps the unused trust funds in the trust and the funds do not become part of her assets. Therefore, is gives protection from creditors or a divorced spouse and protects the inheritance that you left for your child.
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