BLOODLINE PLANNING

Divorce of Beneficiaries

In the unfortunate event of one of your Beneficiaries (usually your children/siblings) suffering divorce after you have passed away, this can have a significant effect on the inheritance you left for them.

A classic scenario would be an individual who has married into the family, but who you wouldn't necessarily want to benefit from your estate if they were to divorce from your child (your beneficiary).

Subsequently, your child inheriting money/assets from your estate then later divorces from their partner, that Inheritance would be at risk without the correct Bloodline planning.

Marriage After Death

Have you considered what might happen if your surviving spouse were to remarry? How would this affect your own children if he/she later changed their Will in favour of the new spouse and any subsequent children?

Or, for those of you who already have children from a previous marriage, how do you ensure that they would get their fair share?

Creditors and Bankruptcy

If one of your children (beneficiaries) inherits assets but then is later subject to bankruptcy proceedings, or has creditors' liabilities, then the whole Inheritance you worked hard for, could be at risk.

What Problems Can Arise Without a Bloodline Trust?

Without a bloodline trust, a number of circumstances can put your child’s inheritance at risk

  • The inheritance can be squandered by your son- or daughter-in-law
  • If the inheritance is commingled with the assets of your son- or daughter-in-law during marriage, it will be subject to equitable distribution during divorce proceedings.
  • Grandchildren from your child’s first marriage could be disinherited by a son- or daughter-in-law from a second marriage
  • Your grandchildren could effectively be disinherited if your son- or daughter-in-law receives part of the inheritance and squanders it through misuse or poor money management.

What Problems Can Arise Without a Bloodline Trust?

A bloodline trust is designed to keep money in the family, protecting the inheritance of your children and their descendants. Bloodline trusts offer a number of important benefits:

  • Trust assets can be used only for blood descendants – your children and grandchildren. Specifically, assets in the trust can be used only for your children’s or grand- children’s health, education, maintenance, or support.
  • Trust assets are never available to a son- or daughter-in-law, either during the marriage or in a divorce through equitable distribution or alimony.
  • Trust assets are protected from your children’s creditors and those of your sons- or daughters-in-law
  • Your child may be given control over the trust.
  • Your child, acting as trustee, can distribute principal to or for the benefit of himself/herself or to his or her descendants.
  • The trust terminates at your child’s death, and the remaining principal can be paid only to your child’s descendants..
  • The trust is revocable during your lifetime, but only by you.

The Legacy Estates specializes in Bloodline planning, Business Succession. Power of Attorney, probate, wills and Trust. We have helped clients with succession planning for a number of years. We work with an established Legal team, who are full members of STEP (The Society of Trust and Practitioners). WE are to serve you We are dedicated to provide comprehensive planning and solutions for wealth distribution, wealth succession, estate administration for individuals and families

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