Many of the questions that are asked of me to be repeated quite often, so I thought it would be helpful for the older law issues in the next few articles to discuss.
I want to leave my fortune, my children, but there is a possibility that the assets of a future divorce or creditors to protect my child? Money left to children can disappear for a variety of reasons - divorce, bankruptcy, litigation or bad investments, to name a few. One way to protect the family money, isthe use of a trust.
Mary and John have four grown children, all with varying degrees of financial success. Dennis, who has the oldest and most successful financially, no need for financial assistance from his parents. Judy, next in line, unfortunately, been through a terrible divorce and fighting for her son on his own to raise. Paula and Frank are both married but their marriages have had their ups and downs. Paula's husband was aware of their limited resources to invest, notget-rich-quick schemes. Frank has just borrowed a lot of money to start his own dental practice.
Parents never stop worrying about their children, and Mary and John are no exception. It's about more divorces, worried about whether Judy will have enough money, whether Frank is thriving-business, or whether he will be sued by a patient. They are also concerned that it has enough money for their grandchildren.
So what can Mary and John do to make sure what assets theyleave actually helps their children and grandchildren? The answer is to use a trust in their estate planning. Trusts after the death of parents by the children's lives and resume, if the grantor chooses, during the term and the grandchildren. The funds are for the benefit of the children and grandchildren, but limits are placed on access to the Trust Fund. The assets are there when needed, but can not be spent on a whim. This restriction provides the necessaryProtection.
The funds are protected from the confidence of creditors in the event of insolvency. As the creditor, the plaintiff in proceedings can not be trusted until the. Funds left for the benefit of Frank will not be available if he ever sued for dental malpractice. In addition, the funds are not considered marital system in case of divorce. A properly prepared trust your family's protection from creditors, the liability of the plaintiff and a future divorce.
An independent trustee can protect themselves confidenceRecipients of bad decisions, whether it is foolhardy to risky investments or expenses. While parents do not protect their children from bad luck, they can create a cushion for them, if it occurs. Some beneficiaries of trust property not under the complete control and access to the fund. This is a trade-off. Do the benefits outweigh the disadvantages? You will have to decide what is best for your situation.
I have a disabled child. How can I best provide for their future well-being? One of thethe main concerns for parents with children with disabilities, as they give their financial future. Here are some legal guidelines are observed:
Buy enough life insurance. A parent is irreplaceable, but someone has to fill in all likelihood that a person or family must be for at least some services provided for the parent, if able. If the property is not large enough for this purpose, it can be made large enough to go through life. Premiums forsecond-to-die insurance, which pays off only when the second of the two parents passes away, can be surprisingly low.
Set up a Special Needs Trust. Any funds left for a disabled child, whether from an estate or the proceeds of a life insurance policy, should be held in trust for his or her benefit. Leaving money for anyone with a disability jeopardizes public benefits. Many people with disabilities cannot manage funds, especially large amounts. Some families disinherit disabled children, relying on their siblings to care for them. This approach is fraught with potential problems. Siblings can be sued, get divorced, disagree on their responsibilities, or use the funds for their own benefit. It can also cause tax problems for siblings. The best approach is setting up a trust fund set aside for the disabled child, known as a Special Needs Trust.
Prepare a Will and include the appointment of a Guardian. While a 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 of the child is so demanding that he or she will need a different guardian from his siblings. The parents must make these decisions, while they can.
Have a care plan. All parents care for disabled children to write down what any successor caregivers must be aware of the child, and what the wishes of the parents would have for hiscare. For example, the child should be in a group home, living with a sibling or on its own? Normally, the parents know best, but they need to disclose the information. Can you explain what helps, what hurts, what scares you, their children and what they insured.
Consultation with other family members. Even a carefully developed plan can be from a well-meaning relative who leaves money directly undermines the child with a disability. If a special needs trust is created for the benefitthe child's grandparents and other family members should be told about it so that it provided a legacy they wish to leave the child trust through direct.
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