My wife and I protect our son. We may even be called over –protective. If we can find clothing made out of bubble wrap, we would most likely get an entire wardrobe for him. Right now, he is only four-years old. So our protection scheme is very hands on – one of us stays close to be able to spring into protective action.
And as he grows and matures, I can foresee the types of protections will change. But the protective acts will always remain. I can see ourselves in the way our parents continue to support and protect us.
So I find it strange when I hear clients insist to not put certain protective language into their trusts. I have to attribute this to a misunderstanding of what the language provides for their children.
In a traditional plan, when the person passes away, and the children stand to inherit, that inheritance is outright to those children – meaning the child is free to do with the money what he or she wants. That sounds good, except that in that plan, that inheritance, once in the child’s pocket, is vulnerable to that child’s creditors, to lawsuits, to a divorce and as part of any government support application.
So we can craft a plan that keeps the good, and eliminates the bad – and why wouldn’t anyone want to protect their children from the bad, especially when they have the power to do so. The good would be that the child can spend the inheritance as he or she pleases; while at the same time the language keeps the outside “bad” away – creditors, lawsuits, divorce and government assistance programs would not be able to get to that money.
To make sure your plan protects your children, please give us a call today to make an appointment, and one of our estate planning attorneys can talk with you as to the best approach to add those protections.
Contributed by MH Albuquerque, Santa Fe and Las Cruces Estate Planning Attorney, James P. Plitz.
Why Choose Morris Hall:
You have a number of options when it comes to estate planning, so why pick Morris Hall? First off, estate planning and asset protection are a very complicated endeavor and you should only trust someone who focuses exclusively on those matters. Also, MH is a proud member of The American Academy of Estate Planning Attorneys (AAEPA) which provides us additional support, advanced training, tools and information that is not available to others – which means that we can better protect your assets and your loved ones. We are one of only two firms in Arizona that belong to the AAEPA and are the only firm in New Mexico that has been granted membership. If you have assets and loved ones that you want to protect, you are in good hands with MH. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.