The most important reason to set up a trust is usually to avoid the time delay and reduce the legal fees of after-death probate proceedings. But the benefits don't stop there.
Protection from a Bad Marriage -
If Dad and Mom are worried that their child is in a bad marriage and they don't want the future ex-wife or ex-husband to take half of the child's inheritance, they need a Living Trust that allows the child to retain the property in the trust without ever changing title of the asset into the child's name. When property is kept in Dad and Mom's trust, the child never takes outright ownership of the property while still being allowed to maintain control and access to the money. The child can receive income and, if necessary, access the principal, but if they get divorced, the child's inheritance can't be claimed by the ex-spouse.
This ability to control the ownership and access to different types of property makes trust planning an invaluable tool for families that want to secure what has taken them a lifetime to earn. The ability to not only transfer wealth but do so in a manner that protects the assets for the next generation is an important strategy that most families should explore with a competent attorney. If you would like to learn more about the various options available to families, please don't hesitate to give our office a call. We've helped many clients with difficult family situations.
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