Are you aware of the two options you have in passing on assets to your children? If not, you should read the information below:
How to Give Wealth to Your Children
There are only two ways to deliver assets to your children:
1) Outright; and
2) In Trust.
Outright Distribution: Most estates are distributed outright. The trust terminates on the parents' death and the assets are given directly to the children once they have reached some predetermined minimum age. This method gives your child's inheritance no protection whatsoever. It is like delivering their inheritance in the back of an old pickup truck.
A Better Way- In Trust: Allowing your children to inherit assets in trust has tremendous advantages. The advantages are so great, that virtually every wealthy family passes on wealth in trust, and so can you.
(1) Property Inherited "In Trust" has Bullet-proof Protection. Letting your children inherit through an irrevocable trust is like delivering their inheritance in an armored truck. Property inherited "In Trust" can be protected from creditors of your children. These potential creditors that can be protected against include:
· Angry ex-business partners who sue your child;
· Greedy plaintiff's lawyers who try to go above and beyond the insurance your child carries;
· Bitter, vindictive ex-spouses who are set on destroying your child financially;
· Property inherited "In Trust" can be protected even if your child files for bankruptcy.
(2) Property Inherited "In Trust" Can be Protected From Estate Taxes.
· When your child dies, this wealth is passed on to the next generation free of estate taxes.
· Although there is a limit on what can go into an estate tax free trust like this on your death, there is no limit on how much this trust can grow during your child's lifetime. In other words, if this trust starts out with $3.5 million, and grows to $100 million when your child dies, $100 million passes to your grandchildren free of estate taxes.
______________________________________
Amaral & Associates, P.C. can assist you with your estate planning needs for a reasonable fee. Please feel free to contact us at our office by dialing (617) 742-2020 for our Boston Office, (617) 539-1010 for our Winthrop office, or Toll Free at (800) 290-1012. You may also contact us by email at edamaral@amarallaw.com or you can visit our website at www.amarallaw.com.
*For a no cost confidential case review CLICK HERE and receive a response from our attorneys within hours.
