There are many reasons our clients choose to create Trusts, and they all have to do with one very important word: PROTECTION.
Protection for Surviving Spouse and Children and Other Beneficiaries
Trusts can be used to protect you during your lifetime, as well as your heirs from losing your life savings when unforeseen events happen like divorce, lawsuits disability and debt. Like your daughter, but not so much your son-in-law? Worried about what will happen if your daughter inherits your estate, co-mingles the funds with her husband’s, and then their marriage fails? It’s not something we want to think about, but in this scenario, half of your daughter’s inheritance could be lost in the divorce!
Remarriage Protection
“What if my husband remarries after I pass?” If a wife passes early, her kids could be inadvertently disinherited if her husband remarries and is the first to pass in his second marriage! Without careful planning, the new wife in this scenario could end up holding all the assets from the first marriage — and leave them all to HER children. We can prevent this by building in what we call “bloodline protection” into your estate planning. Most of our clients want bloodline protection to ensure their children are provided for, even in the event that the surviving spouse chooses to remarry.
Protection from Losing Government Benefits
We never know what curve balls life may have thrown at your spouse or other heirs at the time of your passing. What if they are disabled and on public benefits that they need pay for care? Instead of leaving assets to your heirs to them directly, in their own name, we can use Trusts to hold assets for their benefit, so that they don’t lose the benefits they are receiving.
Protection for Blended Families
Estate planning for blended families is so important, and goes a long way toward heading off future disputes. Many is the adult child who has asked us, “What happens to my inheritance if Dad remarries?” The man or woman who remarries after a divorce or the untimely death of their first spouse usually has two equally important goals: they want to take care of their new spouse, but they also want to make sure their children from their first marriage are taken care of as well. With the right Trust, we can do both! We can create a Trust for the blended family that ensures the surviving spouse is taken care of, but also ensures that certain assets are reserved for the children or other important beneficiaries. If you have a blended family and either no existing estate planning or estate planning that you suspect doesn’t provide the protections I’ve just described, give our office a call today to gain the peace of mind that comes from sound blended family estate planning.
Legal Protection for A Child With Special Needs
It used to the be the case that the parents of a child with special needs would be advised to leave that child out of their Will. The reason was fear that the child would lose government services and benefits if they received an inheritance. Today, parents can have much greater peace of mind by planning with a Special Needs Trust. If you have a loved one with special needs, a Special Needs Trust can be extremely important planning to put in place. As we saw in the last topic, Trusts can be used to hold assets for the benefit of someone with special needs, as a way to provide for their future, but not disqualify them for the benefits they may be receiving. This tool gives parents the certainty of knowing their child or other loved one with special needs will be taken care of, no matter what happens to other family members along the way.
Asset Protection for Farms and Ranches
Is there a such thing as a “Ranch Trust” or a “Farm Trust?” The answer is yes! In West Texas, we have many families who don’t consider themselves rich that have a family farm or ranch. This land may have been passed down for generations. Their land is the largest part of their estate, and the idea of losing it in a lawsuit or to the cost of long-term care is unthinkable. With the right Trust, we can provide legal protection for farms and ranches from threats like lawsuits and also from having to be sold to pay for long-term care.
