One divorce, one bad business decision, or one serious accident is all that’s needed to wipe away the financial assets that took a lifetime to build up. But having a legal plan in place will protect those assets in the event of a catastrophe.
Asset protection planning ensures that your assets will be protected after they are passed on to your beneficiaries from their future ex-spouses, creditors, judgment decrees and even themselves. However, asset protection must be set up in advance to work and keep the family wealth within the family it was intended for.
Before leaving your children their inheritance outright, consider some of these scenarios:
- Are your adult children still too young or immature to handle money properly?
- Is a future divorce a possibility that would cause your children to lose one-half of what you are entrusting to them?
- Do you children have good business sense? Might they loss all their inherited wealth in one bad business decision?
- Could they be involved in a serious accident, be sued in a court of law and lose everything?
- Could your children be injured or develop a debilitating illness that would require long-term rehabilitation, nursing home care, or chiropractors Wauwatosa?
- And lastly, while not something any parent wishes to consider, what happens to the assets you leave to your children should they die prematurely?
We want to leave our assets to our children for their personal benefit, not so someone else ends up with our lifetime of acquired wealth through a divorce attorney Milwaukee or lawsuit. The way in which we bequeath our worldly possessions to our children determines how much asset protection they will have in case one or more of the above scenarios becomes a reality in their lives.
Consider also that adult children in certain professions are more likely to be involved in a lawsuit than others. Doctors, lawyers, business owners and landlords are subjected to more lawsuits than those in blue-collar professions. Adult children with a history of any type of substance abuse, gambling habit or poor matrimonial track record also need asset protection planning to protect them from themselves.
Creating a lifetime trust for your children with the assistance of a qualified attorney ensures the assets you leave them remain with and benefit them as you desire.