Can Creditors Attack a Family Member's Inheritance? by ParmanLawOK

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It is a good idea to think things all the way through when you are engaged in the process of inheritance planning

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									Can Creditors Attack a Family Member's Inheritance?

It is a good idea to think things all the way through when you are engaged in the process of
inheritance planning. Getting resources into the hands of your loved ones is of course the goal, but
you would do well to consider the personality traits and financial capabilities of the people who will
be receiving inheritances.

If your intention is to provide a long-term financial underpinning for each of your loved ones you
should ask yourself if arranging for lump sum inheritances is the best choice.

There will invariably be some people on your list that have demonstrated a sound ability to manage
their own financial affairs, and you may have no concerns about these family members. On the other
hand, there could be someone in the family who has a tendency to fall into unmanageable debt.

You have to understand the fact that creditors could indeed attack a family member's inheritance if he
or she owned the resources personally. One way to prevent this from taking place is to fund an
irrevocable spendthrift trust for the benefit of an heir who is not a good money manager.

Resources placed into such a trust are not subject to attachment. That’s because the beneficiary does
not have direct access to the funds. You engage the services of a trustee when you are drawing up the
trust agreement, and this individual or entity will administer the trust in accordance with your stated
wishes.

Not everyone will be especially pleased when they find out that they are not getting a direct
inheritance when perhaps other family members are receiving a lump sum. However, these individuals
will usually come to understand the wisdom behind your decision at some point in the future.

Experienced estate planning attorneys Oklahoma City OK of the Parman and Easterday offers estate
planning and business planning resources to residents of Oklahoma City OK. To learn more about
these free resources, please visit www.parmanlaw.com/ today.

								
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