Here’s How You May Be Able To Receive an Inheritance that is Protected Against Bankruptcy, Business Liability, Divorce or Future Estate Taxes

An “Inheritor’s Trust” is an exciting concept that can help adult children who have asset protection concerns insulate their future inheritance against potential liabilities.

The concept is simple. Many adult children are scheduled to receive an inheritance. For many, they will receive this inheritance at a time in their life when liability potential is the highest.

Most all adult children will be well ingrained in their careers and at the peak of their earning capacity. Some may be professionals or business owners with unique areas of exposure. As much as we hate to think of it, divorces in America are also a prevalent consideration.

The problem with much of the traditional estate planning today is that it forces inheritances to be distributed outright to heirs. Once an inherited asset becomes part of the beneficiary’s estate, that asset is now subject to lawsuits, bankruptcies, divorces and future estate taxes.

The Inheritor’s Trust is a beneficiary-controlled dynasty trust that can be designed to accept a future inheritance. Rather than Mom or Dad passing a legacy outright to a child, they can have that legacy distributed to an Inheritor’s Trust that will protect the inheritance from estate taxes at the child’s death and from creditors and divorcing spouses even though the child controls it.

If you buy that line of reasoning, it’s an easy step to wanting a beneficiary-controlled trust for receiving lifetime gifts, not just transfers at death.

Suppose an entrepreneur could convince a parent or grandparent to create and fund a beneficiary-controlled trust with money for him to start a business. Then all the wealth created by the venture could stay in trust, shielded from predators and estate tax. It adds a dimension to business planning that few practitioners consider.

To learn more about the potential benefits of creating a “Dynastic Wealth Transfer Plan” please feel free to contact me for more information. To schedule a complimentary meeting, either in person or by telephone, please use the use the CONTACT US link and let me know.

I look forward to meeting you!