At Nici Law Firm, we have reviewed countless estate plans and we have seen some truly alarming gaps in protection.  Most clients have worked hard to create wealth to secure their family’s financial future and they want that wealth to pass on to their designated beneficiaries when they are gone.

 

But here’s the question: have you taken the necessary steps to actually  protect  the wealth you leave to your beneficiaries from THEIR creditors, predators, or potential illness/disability?

 

The Risk to Your Legacy

It’s common to assume that a standard estate plan is enough. However, life is unpredictable, and there are many ways your legacy could unintentionally slip through the cracks.  Below are the "3-Ds" of protection we suggest you include in your estate plan:

• Damages: Protection from Damages related to a car accident or a bankruptcy judgment against your beneficiaries.
• Divorce: Protection from Divorce in which an ex-spouse could take half (or more) of the wealth you leave to your beneficiaries.
• Disability: Protection from Disability so government benefits would still be available to your beneficiaries.

These scenarios are unpleasant to consider, but they happen every day. The wealth you intended to leave to your beneficiaries could end up in the hands of strangers, courts, or creditors, BUT THAT IS SOMETHING THAT YOU CAN PREVENT WITH PROPER PLANNING!

 

The Solution: A Creditor Protected Inheritance Trust

 

A  creditor protected inheritance trust  ensures that your legacy is safeguarded and your beneficiaries are protected, even in the face of life’s uncertainties. These additional trust provisions, added to your existing Will or Revocable Trust, are designed to protect your beneficiaries from external threats and even from a beneficiary’s own missteps.

 

Think of it like storing your "treasure" in a "treasure chest":

• In a traditional estate plan, your assets are the "treasure" which are distributed outright to your beneficiaries after your death. Once distributed outright, those assets are fully accessible — and fully vulnerable to lawsuits, bankruptcies, divorces, disabilities or bad decisions by those beneficiaries.
• With a creditor protected inheritance trust (the "treasure chest"), your assets (the "treasure") stay in the "treasure chest" securely locked away, yet available for the benefit of your beneficiaries. You simpley designate a trustee to "hold the key" so the "trasure" can be accessed for the benefit of your beneficiaries, and not for others trying to "steal" the "treasure."

How It Works

 

In a creditor protected inheritance trust, there are a few important features to safeguard your "treasure":

• Single Trustee: For responsible beneficiaries, the beneficiary may act as the sole trustee ("key holder"), distributing "treasure" to themselves or their children, as needed for their health, education, maintenance or support in their accustomed manner of living.  For beneficiaries who should not be the "key holder" for whatever reason (for example, young age or other reasons), an independent trustee may be selected.   In fact, our office handles over 30 of these trusteeships currently, and more are in place to go into effect when our clients pass away.
• Co-Trustees: For beneficiaries who may need some guidance, the trust can be managed by two trustees — one trustee would be the beneficiary and the other could be a trusted advisor or other family member. This ensures that the "treasure" is used wisely and remains protected, but the beneficiary still has access the the "treasure" their entire lifetime.

Why A Creditor Protected Inheritance Trust Is Worth It

 

This simple yet powerful tool allows you to:

• Protect your family’s inheritance from lawsuits, creditors, divorces and potential disability.
• Support beneficiaries facing personal challenges without risking the entire inheritance.
• Ensure your wealth stays in the family for generations to come.

And the best part? A creditor protected inheritance trust, with all "3-Ds" of protection for your beneficiaries, can be easily added to your existing estate plan. 

 

Take the Next Step

 

Regardless of the size of your estate, your wealth deserves to be protected. A creditor protected inheritance trust is a straightforward and cost-effective way to ensure your wealth benefits the people you care about most, while protecting that wealth from outsiders who might try to take it away from your beneficiaries after you are gone.

 

If you’re ready to safeguard your family’s future, contact us today to explore how a creditor protected inheritance trust using the "3-Ds" can provide the security and peace of mind you deserve.