Many New York residents may feel that leaving assets to their loved ones will give them a sense of presence and purpose in their family members’ lives even after death. While wills can be used to distribute property, directly bequeathing assets may not be the best route. Because individuals can face difficult financial situations, trusts could help protect assets.
Many people who obtain inheritances are grateful for the sudden income. They may want to use it however they choose, but that money could also come under attack in the event that they face creditors or legal action. An inheritance could also potentially be divided in the event of a divorce. Fortunately, a trust may be able to help avoid such situations.
When funds or other assets are placed into a trust, they can only be accessed and used by the terms of the trust. The creator of the trust could give specific reasons that the funds could be used, or the terms could remain more general. The trust also protects the funds from potentially being considered marital property or being accessible in the event of bankruptcy or lawsuits.
Protecting property for future generations may take some extensive consideration. Fortunately, trusts and other estate planning tools can help interested New York residents find the best ways to ensure that their loved ones are not unintentionally burdened by an inheritance. Individuals who wish to learn more about their trust options may wish to obtain reliable information from local legal resource or consider consulting with knowledgeable attorneys.
Source: wtop.com, “Estate planning: How to keep your money in your family“, Sarah Beth Hensley, March 28, 2018