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Establishing a bloodline trust will prevent family inheritances from being squandered, but very few people have them, estate planning attorney Kelly Shovelin has disclosed.For more information please visit https://www.fourpillarslawfirm.com
The founder of Four Pillars Law Firm, in Wilmington, NC, said a bloodline trust, or Heritage Trust, protects hard-earned assets and directs them to be used only to those they are intended for.
Shovelin commented: "A significant advantage of a trust is that you can appoint an independent trustee, ensuring money is responsibly spent on a child's health, education, and support. In addition, you control where your wealth goes.
"If a child is not so great with money or life choices, and you don't want the inheritance frittered away, then a Heritage Trust is the best way to go."
Such trusts can prevent a partial or total amount of an inheritance from falling into the wrong hands, such as when a child divorces. Expanding on the issue, Shovelin said: "An inheritance can be in serious jeopardy if a child divorces a spouse who has proven to be irresponsible, such as being poor with money, has addictions or fails to hold down a regular job.”
"If not passed down properly, and in the event of a divorce, your child and their soon-to-be ex-spouse might each receive half that inheritance."
Trusts can also offer a safety net in the event of a child's untimely death, in addition to protection against creditors and lawsuits.
She explained: "What happens to an inheritance if a child names their spouse as their primary beneficiary? If that child dies, and the spouse remarries and renames their new spouse as the new primary beneficiary, the inheritance will land in someone else's hands. A trust can be used to ensure that the assets are directed only to family members, such as grandchildren, if a son or daughter dies.”
A properly drafted trust can also protect an inheritance from creditors. If a child falls into debt or is sued, creditors can access their inheritance if it's not within a Heritage Trust. "Your child could lose 100% of that wealth," she added.
“The inheritance you leave to your loved ones can provide for their future financial security and retirement; protecting your loved ones’ future financial security is simply another way to leave a legacy of love.” She concluded that consultation with an experienced Estate Planning attorney was highly advisable to address the many questions raised before establishing a trust plan.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Kelly Shovelin
Email: Send Email
Organization: Four Pillars Law Firm
Address: 2202 Wrightsville Avenue, Suite 213 Wilmington, NC 28403
Phone: (910) 762-1577
Website: https://www.fourpillarslawfirm.com
Source URL: http://RecommendedExperts.biz
Release ID: 89033452
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