How can I protect the inheritance I give my spouse and kids?
After all the hard work you put into your career, you want to be sure the inheritance you leave your loved ones reaches them safely. Unfortunately, there are many different factors that can reduce or even eliminate the assets you are planning on giving your family. To help you keep your inheritance safe for your family, there are several steps you can take to defend your assets.
Create specialized trusts
Creating a will or living trust can seem like enough to ensure your assets make it to your beneficiaries safely. However, these types of accounts are still vulnerable to ex-spouses, attorneys, and creditors. Thankfully, the right kind of trust can offer the protection you need, such as:
Beneficiary controlled trusts – a type of trust that allows the beneficiary to keep control of the assets in the trust for as long as the assets remain in the trust.
Spendthrift trusts – this type of trust is for those who might carelessly spend their money. A trustee separate from the beneficiary is responsible for distributing the funds for the beneficiary, commonly for needs like education, healthcare, etc.
Proper trust creation can also keep creditors at bay from trying to take money from your beneficiaries.
Keep your estate planning current
Trusts that specialize in defending beneficiaries are not the only way to protect your assets. Keeping your estate plan up to date helps make sure that your estate plans match your current wishes for your beneficiaries. If you wait too long to update your plans, they may no longer reflect your current life, and you may still have an ex-spouse listed as a primary beneficiary. Be sure to regularly inspect your estate planning to make sure your estate is going to the right people.
Talk to an attorney
An experienced estate planning attorney can help you develop a strong plan that can prevent threats against your assets. There is no telling what tomorrow will bring, so be sure that you seize the moment to help make sure your beneficiaries get exactly what you want them to receive.