Inheriting in a lifetime protected trust is the absolute best way to receive an inheritance. And, you should keep your inheritance in your trust. Why? Good question. And, we have good answers. Read on.
When your inheritance is in trust, it’s protected.
This means that it’s available for your use, and likely your children’s use, but no one else. The trust will be drafted with protective language so that if you get sued in malpractice or stemming from a car accident, go bankrupt, experience business failure, or get divorced, the assets are protected.
If you have inherited outright, the assets could be seized by these creditors and others.
When your inheritance is in trust, you can more easily ward off predators.
When predators know that you’ve inherited, you are likely to get requests to invest, make a loan, make a gift, and donate to charity. It can be overwhelming. When your inheritance is in trust, you can more easily ward off predators. For example, when an unscrupulous Cousin Vinny asks to borrow money, you can respond, “Sorry, Cousin Vinny, it’s all tied up in trust.”
Think of your inheritance as being held in a treasure chest.
When you inherit in trust, you inherit a treasure chest; and, you have the only key to the treasure chest; your creditors and predators have no access. You can access the treasure to buy a house, car, food, and pay utilities and medical bills. You can really access the treasure for any of your needs: health, education, and maintenance.
Keep assets in your treasure chest.
As you make investments and, perhaps, purchase a home. Keep the assets in the trust. For example, when you purchase a home, purchase it in the name of your trust, not in your individual name or joint names with your spouse. If the house in titled in the name of the trust, it cannot be taken from you.
If you have any questions about inheriting in trust or about running your trust, consult with a qualified estate planning attorney.