If you plan to leave your children a significant inheritance, you’ll want to make sure that inheritance is protected long after you’re gone. Estate planning attorney Randell Doane says one simple step can make all the difference. If you set up a continuing trust, the money is safe, even if your children’s life takes an unexpected and unpleasant turn:
“If I inherited a million dollars that’s very nice, but if a few years later i get a divorce it’s at risk, or a few years later I get sued, from an auto accident or someone falls on my front steps, it’s a risk, or I file bankruptcy it’s at risk. Had my parents left my million dollars in a continuing trust, it’s not reachable when those bad things happen.”
And if your child is named the trustee, they can spend the money, invest it as they please. If it’s all spent great. If there’s anything left it can be passed down to the next generation, at favorable tax rates. If you need more information about continuing trusts call Doane and Doane or log onto doaneanddoane.com.