America is not only the land of opportunity, it is also the land of litigation. In our society today, the possibility that someone may take your assets away from you or your children is ever-increasing—a divorce, lawsuit, or judgment can claim all or a portion. Asset protection planning will ensure your assets are protected in the hands of your beneficiaries from their future creditors, divorce, judgments, and even themselves. However, this protection has to be set up in advance in order to work.
If you’re contemplating leaving your children’s inheritance to them outright, ask yourself if it’s possible that they might:
- Inherit the money too young and handle it foolishly
- Get divorced and lose half of their inheritance to a disgruntled spouse
- Start a business after being “downsized,” end up bankrupt, and lose their inheritance
- Be involved in a serious accident which would put their inheritance at risk
- Acquire a serious illness that requires nursing home care
- Die prematurely
The manner in which you leave your property to your children determines how much asset protection they will have. This may be especially important if your children are doctors, lawyers, landlords, or business owners, as these professions are subject to a larger proportion of lawsuits. It is an equally sensitive concern if your children have a history of addiction or have had a string of bad marriages.
We are often asked if there is a way our clients can leave their legacy to their children without the son-in-law or daughter-in-law getting everything. The answer is that yes, we do this quite frequently.
We help clients create lifetime trusts for their children, so their children will be protected from divorcing spouses, creditors, and lawsuits. It is a tremendous gift to your beneficiaries and one that passes your care and values to them in a meaningful way. This is one of the most sought after reasons why our clients utilize our planning solutions.
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With offices in Madison, the attorneys at Wilson Law Group assist clients with Estate & Business Planning, Probate & Trust Administration, and Elder Law & Medicaid Planning throughout Southern Wisconsin.