Protection for YOUR money
Suppose you could deposit your money into two different accounts, which would you choose?
- Bank account (A) is safe from lawsuits, creditors, divorce, bankruptcy, etc.; or,
- Bank account (B) could be wiped clean by lawsuits, creditors, divorce, bankruptcy, etc.
I assume that you would choose account A for YOUR money. Believe it or not, estate plans that I review much more commonly offer account B to their children and grandchildren.
Whether assets or money are passed by a will or by a trust, they can be placed into a protected account. That "account" is actually a specialy designed trust for the benefit of each child or grandchild designed to give protection.
There is little downside, because the child or grandchild can become trustee of their own trust at an age that is appropriate under the circumstances. Consequently, the child has control over their "account." Truly, in this age where litigation and divorce are rampant, an inheritance protection trust is a very powerful tool to preserve YOUR money for the benefit of the people you love.
It would also be an appropriate time to include your children in your planning process. Consider asking your children which account they would rather have for their inheritance and legacy.
