When many of our clients hear about inheritance protection for the first time, they understandably look back at us with confused faces. For starters, that is not the sort of term you hear often. Secondly, most people are not too concerned with what their children or grandchildren do with their inheritance—especially if it is money. They simply want to ensure that everything they own is dispersed to everyone they love according to their will.
But let us pretend for a second that your child or grandchild inherits $100,000 … or even $350,000 when you pass away.
Even if those beneficiaries are adults by that point, what do you think they will do with the money?
I love watching the lightbulb go off in my clients’ heads when I ask that question in seminars. And their answers are typically the same: “They’ll spend all of it.” The reality is that even a really responsible 18-year-old might buy a house they cannot afford or spend their inheritance on items that are not a good decision in the long term.
And even if they intend to save the money and spend it judiciously over a period of time, what if they get divorced, have creditor problems, or get sued? In those scenarios, the money you left them is now vulnerable to outside factors.
Inheritance Protection Has its Benefits
Your children or grandchildren need inheritance protection, and we do not mean the type of protection standard insurance provides. By setting up a trust for your beneficiary’s inheritance instead of directly giving them the lump sum via a will, you can adequately protect the inheritance from various unforeseen circumstances.
We can design a trust that protects even the most responsible beneficiaries from losing what you leave them to creditors, lawsuits, and divorce. The trust can also dictate at what age the beneficiary receives the inheritance, thereby keeping it out of a potentially over-eager 18-year-old’s hands for a few more years. Another benefit of using a trust is ensuring that the money you leave your children eventually passes on to your grandchildren. If your child is financially responsible, they can even be their own trustee.
No matter your situation, we can create a trust that provides inheritance protection for your beneficiaries to the fullest extent possible.
Call Leigh Hilton PLLC Today!!
Regarding estate planning and your unique needs, it is vital to be prepared for as many situations as possible. Call Leigh Hilton PLLC in Denton, TX. We have ample experience and will take into consideration your particular situation. Proper planning of an estate, whether through a Will, Trust, or ancillary estate planning documents, helps ensure your wishes are carried out.
Leigh Hilton PLLC wants to be your first call every time for any estate planning need. We look forward to serving you.