Pennsylvanians who have large estates can take steps to protect their assets and the beneficiaries who will inherit them. Good estate planning might help to protect assets from judgment creditors and division in divorce. It might also help families to preserve their assets for generations while protecting their families from estate and gift taxes.
Creating a trust with an appointed trust protector
One way to protect adult children who stand to inherit large sums of money is to create a trust and name them as the trustees. This allows the children to access funds from the trust whenever they need it. To protect them, the trust document should name a trust protector to be appointed if certain situations arise. If someone threatens a lawsuit or a marriage appears to be headed for divorce, the trust protector can assume control of the trust so that the assets will not be reachable by a judgment creditor or an estranged spouse.
Benefits of asset protection and dynasty trusts
Setting up an asset protection trust can also help protect the trust assets in a divorce or lawsuit. With this type of trust, ownership of the assets is transferred to the trust. It is irrevocable, which means that it cannot be changed after its creation by the grantor.
Finally, people who have built large fortunes might want to consider creating dynasty trusts. These trusts allow the families to access the funds without owning them and can be used to avoid estate and gift taxes for generations.
People in Shillington and throughout Berks County might want to get help from experienced estate planning attorneys for help with deciding how to handle their assets. The attorneys may review their clients’ situations and advise them about the various types of estate planning tools that could benefit their families and meet their estate goals. Estate planning might be used to protect assets, avoid probate and preserve the wealth that people have built. Depending on the specific situation, it is possible for the assets held in a trust to be preserved for generations to come.