Consider how your estate plan will take care of your family. A farm or business could provide income for generations. Alternatively, a retirement or brokerage account that took a career to accumulate could be gone to a few purchases and taxes without proper guidance. If you took great care in raising your children providing them with educational opportunities, sports, dance, private lessons, you should consider the gift of a trust to benefit them and your grandchildren. A trust for your heirs can provide:
- Asset protection – The value of the trust assets are generally exempt from the claims of the children’s creditors.
- Divorce protection – The trust assets do not become marital property as long as the assets remain in trust.
- Splurge protection – You can set limits on fast the money is drawn out of the trust.
- Professional management – You can name an adviser to continue to manage the money for the child’s benefit.