When to Use a Lifetime Trust
Irrevocable Trusts are a standard in advanced estate planning. These trusts offer estate
tax reduction, asset protection and probate avoidance. A Lifetime Trust is one type of
Irrevocable Trust that you may consider during the advanced planning process.
If you are part of a blended family, you may understand the confusing dynamics that
might create some inheritance issues. If your spouse isn’t the mother or father of your
children, you should create a special plan to protect their inheritance.
A Lifetime Trust is a great way to do so. You can create Lifetime Trusts for each of your
children and for your spouse. Such a Trust will protect each family member’s inheritance
from his or her creditors or a future divorcing spouse.
Special Inheritance Circumstances
A standard Last Will and Testament provides inheritances outright to beneficiaries.
Outright distributions do not allow you to navigate special inheritance situations. For
example, if you have a disabled loved one, a Lifetime Trust could provide long term
income without affecting access to government aid. A Lifetime Trust for an heir who is
bad with finances could allow that heir financial stability for life.
If you have a taxable estate, you should focus on estate tax reduction methods including
a Lifetime Trust option. This will protect the inheritance of your children from your estate
tax burden as well as that of your spouse.
Funds for Future Generations
Do you have a secret desire to provide a financial legacy that lasts into the life of your
great-grandchildren and possibly beyond. You can use a Lifetime Trust to create a
Dynasty or Generation Skipping Trust. Such a Trust could allow your children,
grandchildren and great-grandchildren funds for college and a source of supplemental
Experienced estate planning attorneys Atlanta GA of the Pyke & Associates P.C. offers
estate planning and business planning resources to residents of Atlanta GA. To learn
more about these free resources, please visit http://www.cpyke.com today.