Protecting A Beneficiary’s Inheritance From Their Creditors And Possible Bankruptcy
Do you want the inheritance you leave to be consumed by your beneficiary’s creditors?
Once your beneficiary inherits assets outright or your trust distributes its assets outright to your beneficiary, with few exceptions, the inheritance becomes reachable by your beneficiary’s creditors. In today’s economy, more people are declaring bankruptcy than ever. And in our litigious society, many good people are sued each year.
People who fail to plan and people who execute a plan but do not leave their assets to their beneficiaries in trust will leave their inheritance open to the beneficiary’s creditors. Those who leave their assets in trust until the beneficiary reaches a certain age expose the inheritance to the beneficiary’s creditors once the beneficiary reaches that age.
You don’t have to allow the inheritance you leave to go to your beneficiary’s creditor. With careful planning, you can protect the inheritance you leave and ensure it remains for your beneficiary’s benefit only.