Did you know that giving outright ownership of your assets to your children could put everything you’ve worked so hard to leave behind at risk?
Don’t worry, though. Grimaldi Law Firm is committed to ensuring your assets are taken care of safely and in the best way for your family. We are here to ensure you don’t run into any problems with ensuring your children are well-taken care of once you are no longer here.
Here are five reasons to hire an estate planning attorney in Florida to properly handle your future financial goals:
1. Your Child’s Future Divorce
I know it’s not pleasant to think about, but considering recent statistics, it’s 42% likely your child will divorce during their lifetime. In most divorces, property is divided evenly. This means, if you have a married child, and you leave them an inheritance, as much as half of their inheritance could go to their ex-spouse should they choose to divorce.
2. Extreme Debt/Bankruptcy
Debt happens – whether for reasons that involve student loans or even credit card debt, your child may incur such extreme debt that the only possible relief will come through bankruptcy.
In the event of extreme debt, the inheritance you worked so hard to leave behind for your child could be compromised by debt collectors. The only way to ensure this is to protect this inheritance with legal help.
Unintended neglect that injures someone’s person or property could wipe out the inheritance you leave your children. For example, ACE Financial Services, Inc. in 2012 found this lawsuit judgment that caused some unexpected inheritance drama:
● $49 million in California for an automobile accident where the family of 21-year-old college student sued drivers of two vehicles involved in the multi-vehicle crash. The plaintiff was in a coma for one month and is expected to require lifetime 24-hour care.
This is a prime example how, well-intended, but neglectful behavior on the part of your children could affect their financial futures forever.
According to Prof. Jay L. Zagorsky of Ohio State University, 40% of individuals inheriting less than $100,000 will spend or lose the entire inheritance and 18.7 % of individuals who inherit more than $100,000 will spend or lose the entire inheritance. If you’re worried about your child mismanaging their inheritance, you’re not alone.
5. Lost Work Ethic:
Vic Preisser, of the Institute for Preparing Heirs, has reported that unprepared children who inherit money are susceptible to excessive spending, identity loss, and guilt over receiving money they didn't earn. Additionally, Preisser says, "In a year to 18 months, everything falls apart -- marriage, finances -- and if there is a drug problem it becomes worse."
Clearly, outright inheritance for your children is not the best way to go.
Further, if the children are minors, they are not able to inherit!
We’ve got a plan for your family that is far, far better.
An alternative to an outright inheritance to your children) is to gift your assets to your children at the time of your death via a Lifetime Asset Protection Trust.
A Lifetime Asset Protection Trust can be drafted to give your children full control of their inheritance (if you choose), but ensure they never own the inheritance. You are gifting your children with airtight asset protection, of the kind they couldn’t give themselves at any price. If your children ever get divorced, file bankruptcy, or are ordered to pay damages in a lawsuit, they can’t lose the inheritance, simply because they never owned it.
When you come in for a Family Planning Session at Grimaldi Law firm, if you desire to provide the most airtight form of asset protection for your child, and set up a structure that incentivizes them to invest and grow their inheritance rather than squander and waste it, we will discuss all the options with you then.
Because at Grimaldi Law Firm, your future is our present.
We can be reached at (954) 491-8707
Special Note: The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced real estate attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.