Bloodline trusts should be considered by anyone concerned with keeping assets for direct descendants and protected from unintended parties outside the family.
For anyone with significant assets, protecting them for future generations is an important consideration. We want to have peace of mind that our beneficiaries will benefit from the hard-earned assets that we have left them. But there are times when that requires us to look at the potential pitfalls that may lie ahead and make proactive accommodations for them. Such is the case with establishing a bloodline trust.
At Matus Law Group, our highly skilled NY and NJ bloodline trust attorneys take our clients’ asset protection very seriously. One of the ways we do this is by ensuring that your assets are protected for the ones you love and don’t fall into the wrong hands. This can be done with a bloodline trust.
For trust planning help, call us today at (732) 281-0060.
Every family is unique. And while we strive to do the best for our children and grandchildren, life happens, and they often make decisions or experience circumstances that may put the assets we leave them in jeopardy. That requires us to consider potential future scenarios and protect against them as much as possible.
A bloodline trust can be used to help protect against these future uncertainties. These trusts are often used to keep assets within the family and away from unwanted parties such as creditors, ex-spouses, or irresponsible spending by beneficiaries. With a bloodline trust, an heir’s ex-spouse or another unintended party will not have a claim to their inheritance. At Matus Law, our trust attorneys have made it their life’s work to help families protect the future of their loved ones. To schedule a consultation, call us today at (732) 281-0060.
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Trusts are estate planning devices that serve to control how your assets are passed on after your death. Typically, a third party, called a trustee, manages the assets in the trust and, upon your death, distributes them according to the trust’s terms.
In the case of a bloodline trust, instead of leaving assets outright to your children or grandchildren through a will, assets may be left in the trust. The trust may be managed by an independent trustee or your inheritor may act as the trustee or co-trustee. This ensures that assets are not part of your children’s or grandchildren’s estate, but remain in the family. It further protects them from other outside parties and creditors.
A bloodline trust may continue into future generations until it becomes too small of an inheritance or its administration becomes impractical. Consequently, it should be carefully drafted with the future in mind. Your estate planning attorney will be able to offer options and advise you of all potential consequences. Contact The Matus Law Group to schedule a consultation today. To learn more and set up a time for your consultation or to speak with a trust lawyer call (732) 281-0060.
Bloodline trusts should be considered by anyone concerned with keeping assets for direct descendants and protected from unintended parties outside the family. The trust can be revoked by you at any point during your lifetime.
A bloodline trust can provide asset protection in cases of:
Some beneficiaries may be too young to manage money responsibly or may simply not be good money managers. Your child or grandchild may be married to someone who has exhibited poor financial behavior in the past or has addiction issues. When assets are placed in a bloodline trust, they can be managed by a trustee in accordance with your wishes, so the assets are not used frivolously.
While we love our children and grandchildren unconditionally, they can occasionally make decisions that we do not agree with. This may be true for their choice of marriage partner. Even in the best of situations, divorce happens. Because of equitable distribution requirements in divorce settlements, this can translate to assets going to the soon-to-be ex-spouse. A bloodline trust can protect against this.
If your heir is subject to a lawsuit, the creditor may be able to attach to the assets you have left. Unfortunately, the creditor could possibly take your heir’s complete inheritance. When assets are left in a bloodline trust, they are protected from any future lawsuits and creditors.
Assets left to your beneficiaries will become part of their estate. In most cases, their spouse will become the primary beneficiary of that estate. In the case that your child or grandchild dies, their spouse may remarry, with the newer spouse becoming the primary beneficiary of his or her estate. Consequently, your assets may end up in the hands of some subsequent marital partner at some point in the future. In this case, a bloodline trust can make provisions that assets be passed to another family member upon the death of your inheritor.
In these cases and others, a bloodline trust can ensure that your child or grandchild’s inheritance will remain in the family and not fall into the wrong hands due to unforeseen or unfortunate circumstances. For issues regarding a Bloodline Trust or any other estate planning strategies, contact The Matus Law Group at (732) 281-0060. We can help you achieve a peace of mind regarding the disposition of your estate.
Estate planning can get tricky. You might overlook things, or you might become too specific, which isn’t good, as well. Making mistakes could leave your son, daughter, grandchildren, or anyone from your bloodline with less than what they deserve.
Make it your business to avoid the following things during estate planning.
Not including your family and friends in the discussion — There are exceptions to this rule. However, it is a good idea to at least have a conversation with family and friends. It is possible to set expectations early, so that there are opportunities for discussion. This could reduce the chances of any disagreement after your death. You can also include in your estate plan who may contest any of the items:
When in the process of estate planning, we recommend that you be as precise as possible. There is a caveat. There are some properties that you may have at one time in your life, but not necessarily in the future. Do you have stocks in your retirement plan? Real estate? A business? These are all the things you can’t guarantee to still have in the future.
Even the most complete estate plan will be useless if it isn’t found by your heirs. You should think twice about putting your estate plan in a safe deposit box. It can be complicated if your loved ones attempt to access it after your death. You will want to keep your estate planning documents safe and together.
Another mistake is assuming that your children will be interested in something when they might not. You might want to pass down a vacation house that has been in your family for generations. However, the condition is that each child must be married and have their own vacation home. What happens if a child doesn’t want to get married and is only focused on growing their business? Or maybe they don’t want the responsibility of being a homeowner. These cases can result in substantial legal fees that could impact the estate’s overall size. In this instance, heirs will need to go through the courts to receive allowances.
At The Matus Law Group, our skilled group of bloodline trust lawyers are here to help ensure your asset protection and help provide you with a peace of mind. We serve both New York and New Jersey residents with extensive estate planning services, offering the experience, and compassion they deserve. Contact us via email at firstname.lastname@example.org or via phone at (732) 281-0060 to schedule a consultation and to discuss any of your estate planning needs.