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One last gift just after the holidays…give your child the gift of asset protection

One last gift just after the holidays…give your child the gift of asset protection

How would you like to be able to pass on your hard-earned assets to your kid(s) so that it is protected from predators?

Today, I am going to tell you about an asset protection strategy that will allow you to give your loved ones what you want in a way that protects it for them.

First, let’s examine the facts. Regardless of how responsible your kids are or how well you raise them, you can’t control what happens to them or what others try to do to them as they navigate through life. Some of the perils that could affect their inheritance include:

  • a business deal gone bad
  • a creditor attempting to raid their inheritance
  • divorce
  • a lawsuit filed against them, or
  • themselves (even responsible kids sometimes make bad decisions)

So what can you do? How can you help prevent the loss of their inheritance due to one of these circumstances?

Solution: Consider wrapping their inheritance in an asset protection trust.

How it works: An asset protection trust is set up to permit distributions to your chosen beneficiaries, but it also gives the trustee the right to accumulate assets for the benefit of trust beneficiaries rather than being forced to make distributions. Asset protection trusts will include spendthrift provisions that prevent a beneficiary’s interest in the trust from being assigned to some other person or entity, whether such assignment is voluntary or involuntary.

Al that being stated, the devil is in the details with this kind of strategy. These trusts must be structured and drafted carefully to help ensure that your objectives are met. Furthermore, the success of any asset protection strategy will depend largely on your individual circumstances. You should discuss any asset protection or estate planning strategy in depth with a skilled attorney before making any decisions.

If you would like to learn more about asset protection, you can come to one of our workshops. Click here for our contact information.

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