Protecting Your Assets With A Trust
Trusts can do more than enable your beneficiaries to avoid probate. They can also protect assets from creditors, predators, divorce and other issues.
The estate planning attorneys of Richardson & Richardson, LLLP, can design trusts to meet your special goals and needs for asset protection. We have law offices in Tullahoma, Tennessee, and Stuart, Florida.
Protecting The Interests Of Children In Blended Families
Unfortunately, not every blended family is The Brady Bunch. How can you be sure that your assets will go to your children if you die before your spouse? Those assets could go instead to your spouse and his or her children.
You can protect your children’s inheritance through a QTIP trust. Your surviving spouse can receive all income from the trust, while assets go to the people you designate.
Protecting Your Children’s Inheritance From Predators And Creditors
Issues such as bankruptcy, lawsuits and ex-spouses can lead to the loss of your child’s inheritance. By conveying assets to children in a trust, you can ensure that those assets are used for the benefit of your children.
Protecting Children With Special Needs
If you have children with special needs, you can set up a special needs trust to provide them assets without making them ineligible for government programs such as Medicaid.
Protecting Beneficiaries From Themselves
If you fail to plan your estate, your beneficiaries could receive their entire inheritance as early as age 18. Think of cars and motorcycles. If you create a trust with a spendthrift provision, you can protect your children’s inheritance from being wasted.
Protection From Taxes
There are specialized trusts you can use to accomplish specific objectives such as minimizing or eliminating estate taxes. As of 2018, federal estate taxes only apply to estates in excess of $11.2 million. Tennessee and Florida do not have a state estate tax.
Charitable remainder trusts can help you minimize income taxes now while supporting a charitable endeavor later.