There are many different factors involved with asset protection, especially when it comes to building your estate plans. If you want to ensure that your assets are passed down to your grandchildren safely and correctly, it’s important that you have an open and honest conversation with your children about your estate planning goals.
What Are My Options for Asset Protection for My Grandchildren?
This conversation is crucial because it can ensure that your children separate their inherited assets from marital assets, which would protect the inheritance your grandchildren receive in the event of a divorce. To be safe, this discussion should happen before your child gets married, so he or she can create a proper prenuptial agreement.
Another way you can make sure future generations receive their fair amount of inheritance is to draft a will that specifically states a certain dollar amount of the estate for your grandchildren. Your grandchildren will then get a direct portion of your estate, regardless of what your own children do. You can even legally require that such assets be used for a certain purpose, such as a wedding or college education.
When you leave someone an inheritance, these assets are automatically subject to creditors’ claims. This can expose the inheritance to expensive and lengthy lawsuits. To fight this, you can continue your child’s trust for his or her whole life, which is called a “dynasty trust.” This gives permanent asset protection from creditors.
Speak with an Asset Protection Attorney Who Can Give You Proper Advice
If you are interested in ensuring that your grandchildren receive your assets properly in your estate plan, then speak with an experienced estate planning attorney. Call the Law Office of Skipton Law, LLC at 720-613-2633 to speak with a lawyer today.