When you are planning out the inheritances that you intend to leave behind for your loved ones there is something to consider beyond simply what it is that you’re going to give. You also have to give a lot of thought to exactly how best to give it, and when you’re engaged in this line of thinking it is important to think ahead and plan for possible contingencies.
People who begin planning their estates at a relatively early age are doing the responsible thing to make sure their families are provided for come what may even though it would seem on the surface as though death is a long way off. But as you enter your twilight years you may view your estate planning efforts with an added level of purpose. Your impending absence is no longer vaguely theoretical; it is an imminent reality. At this point the true implications of what your absence will mean to your family members for the rest of their lives really hits home.
If you simply leave a bequest to each of your loved ones when you pass away you have to hope that these resources will last for the rest of their lives because you will not personally be there to provide a safety net. Additionally, if your heirs assume full ownership of their inheritances these funds are unprotected and subject to being targeted by former spouses, creditors, and other types of claimants. This is why asset protection is something to consider when you’re planning your estate.
Many people respond to the question of asset protection by creating lifetime trusts for their loved ones. These trusts provide financial support for life, but since the beneficiary does not technically own the assets in the trust they cannot be attached by those seeking redress from the beneficiary. Lifetime trusts can be an important part of your asset protection strategy, and they are something to discuss with your estate planning attorney in detail if you are interested in providing for your loved ones for the long term in a safe and secure manner.
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