Occasionally, families will have a conversation with me which will start similar to the following:
“Our son (or daughter) is married to someone who we do not entirely trust. He (or she) has made numerous bad business and financial decisions. He (or she) has borrowed money a handful of time and never paid us back. He (or she) has filed bankruptcy, has been fired from several jobs and even had their home foreclosed once, which we paid to stop from happening. We are worried that should something happen to us, he (or she) will spend through our daughter’s (or son’s) inheritance and our daughter and our grandchildren will end up with nothing.”
This type of concern has become more and more concerning today. During a pandemic, ever-increasing government regulation and taxation, families are becoming more and more concerned regarding these issues. They need to know how to plan their estate in a manner which protects their children’s inheritance from irresponsible spouses, irresponsible spending, divorcing spouses, lawsuits, creditors and other predators.
We Help You Plan
When a family does not plan for these possible events it can lead to unnecessary probate costs and legal costs. A lack of planning can also lead to children losing their inheritance in a few short months due to irresponsible behavior of a spouse, poor financial decisions, divorcing spouses, creditors, lawsuits and other predators. A recent study suggested that the average inheritance is spent within 17 months!
The good news is that we have helped our clients navigate this issue many different times. We provide our clients with a plan which leaves them with confidence that their family will be protected after they die.
One manner is through the establishment of a revocable living trust with lifetime asset protection. Although these legal documents and strategies can be complicated, the basic scenario provides that upon the death of a surviving spouse, the inheritance is transferred to a separate trust for the benefit of the surviving children. The children can withdrawal all of the income produced by the trust assets annually (to avoid unfavorable trust income tax rates) and as much of the principal that they desire after attaining a certain age (including zero principal).
The benefit in this scenario is that all the assets remain in trust. So long as the assets remain in trust, the assets are protected from irresponsible spending by a spouse, divorcing spouses, lawsuits, creditors and other predators.
If this is a concern of yours, now is the time to meet with your attorney. You must discuss how to implement an estate planning strategy which will preserve your legacy and your children’s inheritance.
For More Information
Please contact the Estate Planning Attorneys at Aronoff, Rosen & Hunt at (513) 241-0400. You can also use our contact form to schedule a time to discuss your estate planning questions and concerns. We can also discuss how you can preserve your legacy and your children’s inheritance with a lifetime asset protection trust. Our Ohio Estate Planning Attorneys look forward to speaking with you!