Leading estate planning law attorney Rex Hogue, partner at Haiman Hogue in Frisco, TX, outlines the reasons to consider bloodline trusts during estate planning. For more information please visit https://www.haimanhogue.com
— In a recent interview, top estate planning law attorney Rex Hogue, partner at Haiman Hogue in Frisco, TX, revealed 4 reasons to consider bloodline trusts during estate planning.
For more information please visit https://www.haimanhogue.com
When asked to comment, Hogue said, "When looking to plan for their estates, many people are unaware of the benefits of placing their assets into a bloodline trust or Heritage Trust. This can go a long way in passing down your hard-earned assets for the people who mean the most to you."
One of the best reasons to choose a bloodline trust is to protect your inheritance if your child gets a divorce.
“With divorces such a common occurrence these days, your inheritance could be in serious jeopardy if your child divorces a spouse who has proven themselves to be irresponsible. If not passed down properly, in the event of a divorce, your son- or daughter-in-law could receive half of the inheritance."
Hogue said some of the warning signs to look out for in a son- or daughter-in-law is poor money management, addiction behaviors such as alcoholism or drug habits, and difficulty staying employed.
Ensuring that your inheritance money is spent in the best interest of your child is another reason to opt for a bloodline trust.
When asked to explain, Hogue commented, "Unfortunately, not everyone is great with spending money, and your child might fall into this category. If you don't want your inheritance to be squandered, then a bloodline trust is the best way to go."
"One of the biggest advantages of a bloodline trust is that you can appoint an independent trustee, ensuring that the money is responsibly funneled into being spent on your child's health, education, and support."
Bloodline trusts help to keep the money in the family in the case of a child's death.
"While we can't control everything that life throws at us, we can control where our wealth goes. For instance, let's say you leave an inheritance to your child who names their spouse as their primary beneficiary. In the event of your child's death, the spouse might remarry, rename their new spouse as the primary beneficiary, and now your inheritance is in someone else's name," he explained.
Hogue was quick to add that if the money was placed in a bloodline trust and the child dies, then the money could go to someone else in the family such as the grandchildren.
Furthermore, bloodline trusts can protect an inheritance from creditors and lawsuits.
When asked for an example, Hogue explained, "If your child ends up falling into debt or is sued, then lenders could have access to your inheritance if not placed into a bloodline trust. That money would otherwise be completely exposed, and your child could lose 100% of the wealth to creditors otherwise meant for them."
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