Trusts are often part of everyday estate planning because of their many benefits. By wrapping your children’s inheritance in trusts, you can prevent your hard earned money from being taken by your children’s creditors.
Your children’s creditors – examples
Your children’s creditors would be people who sue them such as in divorce, bankruptcy, medical malpractice, car accident, and other liability situations.
Why your children’s creditors can’t get your children’s inheritance
Your estate planning attorney will carefully draft trust language that indicates that trust assets may only be used for your children’s health, education, and maintenance. No trust funds can be used to pay their creditors.
This is the same protection used by the extremely rich such as the Kennedys, Rockefellers, and Gates.
How to get additional asset protection
If you are really concerned about an adult child’s ability to manage money you may also name a co-trustee to serve with your child as trustee of his or her trust. For instance, “Jane shall serve as trustee of her own trust share with the professional trustee of her choice.”
Professional trustee – examples
A professional trustee is typically defined as an estate planning attorney, CPA, or corporate fiduciary (bank or trust company.)
If you have questions about providing asset protection for your children’s inheritance, please feel free to telephone our estate planning law office at (858) 792-5988. We’d be happy to assist you.
Having an experienced San Diego estate planning attorney on your side can help ensure that your children will be taken care of even after you’re gone.