Estate plans are necessary, no matter the value of your assets. It is important to think about your estate plan regularly and to update it whenever you experience a milestone in life. Your plan should grow as you do.
What do you know about different types of trusts? If you’ve heard of asset protection trusts, you may be wondering why you might need one. Here are three reasons why you might want an asset protection trust.
You Have Potential Lawsuits
Lawsuits are a good reason to keep assets in a trust. Some industries are more likely to have lawsuits than others. For instance, doctors, financial managers and others who work in the health or finance industry are prone to lawsuits from clients. If you are worried about lawsuits, then having your assets in a trust can help keep those assets from being touched if you have a lawsuit filed against you.
You Have Quarrelling Family
If you know anything about inheritances, then you have probably heard of family quarrelling over an inheritance. It isn’t uncommon for family members to try to contest a will. They may not agree with who you leave which assets to or some may believe that they are entitled to more. Whatever the case, it is not abnormal for families to get into fights over inheritance. If you want to avoid this, then a trust may be the best possible route. While it is not impossible to contest a trust, it is a lot more difficult than contesting a will.
You Have Liabilities
Most people have liabilities. If you own a home, a business or have any debts, then you have potential creditors that could attempt to take your assets. When you die, if you do not have a trust, then your assets could be used to pay off your debts. If you want to avoid this, then having an asset protection trust can keep those assets safe. Your beneficiaries will receive their inheritance without having to worry about paying off your debts.
If you are ready to work on your estate plan, then you may want to consider a trust. To establish a trust can protect your assets from creditors and protect your beneficiaries later on. Trusts tend to have more benefits than they do disadvantages. To find out more about how a trust could help you, contact an estate attorney as soon as possible.