Beneficiary Protection Planning: The Primary Goal For Many FamiliesProtecting Your Family & Legacy
Beneficiary Protection Planning: The Primary Goal For Many Families
The goal of leaving behind an inheritance for your family and loved ones goes beyond distributing your wealth to the next generation. Estate planning is also about taking the necessary steps to protect your family’s future, pass on your values, and leave a lasting legacy. Below, we explain how to properly plan your estate to make sure your beneficiaries are protected after you pass away.
Have You Named a Guardian?
If you have any minor children, you need to appoint a Guardian who will be responsible for caring for them if you pass away. The person you name to be Guardian will be responsible for nurturing, educating, and disciplining the child until they reach the age of 18. That is why it is important to leave clear instructions about how you want your child raised after you are gone.
Create a Spendthrift Trust
Since minor children and young adults generally aren’t mature enough to handle the responsibility of managing an outright distribution of their inheritance, many parents decide to set up Spendthrift Trusts that are designed to protect minors from themselves. Once the parents believe the children will be financially responsible, the trust can be lifted, and the children will have unlimited access and control over the trust assets.
If you want to instill certain values and motivate your children to behave a specific way, then you can establish an Incentive Trust that awards them for certain accomplishments. Incentive Trusts can be customized to include your wishes and the conditions you want to place on the distribution of the inheritance.
Parents often include the following incentives:
- Career goals
- Education goals
- Social goals
- Eliminating risky behavior
Lifetime Inheritance Protection Trusts
A Lifetime Inheritance Trust (LIT) can do more than the other two types of trusts we have discussed so far. A LIT continues after specific conditions have been met by beneficiaries. While a LIT can be used to control the beneficiaries behavior, it can also protect the trust principal from creditors, predators, and divorce judgments.
Speak to Our Knowledgeable Estate Planning Team Today
Do you need help drafting a comprehensive estate plan that clearly specifies all of your wishes for distributing your hard-earned assets? Do you need to update your estate plan to include a different trust that is more suitable to recent changes in your life? If so, turn to Estate Law Partners, LLC so that we can assess your situation and discuss all of your options to help you make informed decisions. Our reliable lawyers will advise you on all of the complicated estate planning matters you need to handle to ensure your legacy is protected.
If you would like to request a case consultation with our attorneys, please call (608) 292-5185 or contact us online.
“I am very pleased to have everything in order in such a professional way.”- Kathy
“Matt did a great job explaining and helping us navigate the process of creating a will and trust.”- Allison
“Matt Suing is a great attorney...”- Michael
“[Matt] was very helpful...”- Troy
“They explain the process in terms that are easily understandable and always have your best interests in mind.”- Barbara