Many of the questions that are asked of me are repeated quite often, so I thought it would be useful to discuss these elder law topics in the following article.
I want my assets to my children, but is there a way to protect assets from future creditors divorce or my child? Money for the children may disappear for various reasons – divorce, bankruptcy, litigation, or bad investments, just to name a few. One way to protect your family money by using a trust.
Mary and John, four adult children, all with varying financial success. Dennis, the oldest and most successful financial, have no need for financial support from their parents. Judy, the next in line, unfortunately, has been through a terrible divorce and is struggling to raise her son on her own. Paula and Frank are both married, but their marriage has had their ups and downs. Paula’s husband has been known to invest their limited resources in a failed get-rich-quick scheme. Frank has just borrowed a lot of money to start your own dentistry practice of his.
Parents never stop worrying about their children and Mary and John are no exception. They worry more leaves, whether Judy will have enough, whether the company Frank will flourish, or whether he will be sued by the patient. They are also worried that be enough for his grandchildren.
So what can Mary and John to make sure what assets they actually go help their children and grandchildren? The answer is to use trust in their estate planning. Trusts can continue after the death of parents through the lives of the children and if the grantor chooses alive grandchildren as well. The funds are left for the benefit of children and grandchildren, but the restriction of access to trust funds. The assets are there if needed, but can not be removed down to the behavior. This restriction provides the necessary protection.
funds in trust are protected from creditors in bankruptcy. As creditors, plaintiffs in lawsuits can not depend trust. Funds left for the benefit of Frank will not be available if it is ever sued for dental malpractice. Also, the funds will not be marital property in case of divorce. A properly prepared trust will protect your family from creditors, responsibility and future creditors divorce.
independent trustee can protect trust beneficiaries from wrong choices, whether they are risky investments or foolhardy spending. While parents can not protect their children from bad luck, they can create a cushion for them if that happens. Some trust beneficiaries will protest not having full control and access to funds. This is a compromise. Do the benefits outweigh the disadvantages? You must decide what is best for your situation.
I have a disabled child. How can I see for the future of their welfare? One of the main concerns for parents with children with disabilities is how to provide for their financial future. Here are some legal tips to consider:
buy enough life insurance. Parenting is irreplaceable, but someone has to fill in. Arguably, an individual or family must pay at least some services parent had provided when able. If the estate is not large enough for this purpose, can be large enough in life insurance proceeds. Premiums another to-die insurance, which pays off only when one of the two parents passes away, can be surprisingly low.
Setting up a Special Needs Trust. Any funds left for a disabled child, whether from the estate or the proceeds of a life insurance policy, should be held in trust for the benefit of his or her. Go money for someone with a disability threatens public benefits. Many people with disabilities can not manage funds, especially much. Some families destroyed, children with disabilities, rely on their siblings to care for them. This approach is fraught with potential problems. Siblings can be sued, leaves, disagree on its obligations, or use the funds for their own benefit. It can also cause problems siblings tax. The best approach is to set up a fund set aside for the disabled child, known as the Special Education Trust.
Will Prepare and include the appointment of a guardian. While Will and the appointment of a guardian is important for anyone with minor children, it is doubly so if the child is disabled. Finding the right guardian can be difficult. In some cases, the care needs of the child can be so challenging that he or she will need another guardian of her siblings. Parents need to make these decisions while they can.
Have a Care Plan. All parents caring for disabled children should write down what everyone successor caregiver would have to know about the child and what the wishes of the parents for the care of his or her. For example, the child should be in a group home, living with siblings, or be on his or her own? Typically, the parent knows best, but they need to pass on information. They can explain what help, it hurts, it scares children, and what is explained to them.
Coordinate with other family members. Even a well-developed program can be sabotaged by well-meaning relatives who leave money directly to a child with disabilities. If special needs trust is created for the benefit of the child, should grandparents and other family members to tell about it, so that they can directly inheritance they may wish to go to the baby through the trust.