If you want to get the maximum amount of money into the hands of your loved ones after you pass away,  you need to consider the asset erosion that can take place during the probate process.

Your estate is going to have to be probated if you use a last will to direct the distribution of your resources to your heirs. Probate provides an opportunity for disgruntled parties to challenge your wishes, and it is also set up to allow for creditors and claimants to step forward seeking satisfaction.

In addition to this, your executor is going to have to inventory and subsequently prepare your assets for distribution to the heirs during probate. There are legal intricacies involved so a probate lawyer is going to be necessary. The probate court is going to impose court costs. An accountant may well be necessary to pay final taxes. Appraisers may be called upon, and an estate liquidation company is often brought in.

All the above can add up considerably. It is not entirely uncommon for probate expenses to reduce the overall value of an estate by as much as 10%, and perhaps even more in complicated case.

Avoiding probate expenses is one of the motivations that people have for using an alternative vehicle of asset transfer such as a revocable living trust. Should you be interested in exploring this option, don’t hesitate to pick up the phone right now to arrange for a consultation with a good Charleston SC probate lawyer.

Kuhn & Kuhn Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you are unfamiliar with trust planning, you will be intrigued by the asset protection that trusts can provide for your estate planning beneficiaries.  Would you like to protect your child’s inheritance from a divorcing spouse, bankruptcy, and law suits?  If you’re like most people in our highly litigious society, your answer is a resounding, “Yes! I want asset protection.”

Divorce Protection

Half of your children will likely get divorced.  You can protect your child’s inheritance from a divorce property distribution.

Bankruptcy Protection

If your child has a business failure, job loss, or medical crisis and must file bankruptcy, his personal assets will be taken to pay off creditors.  If you give your assets outright to your child, those assets will be taken in the bankruptcy proceedings as well.  However, if you give your assets to a trust for the benefit of your child, they cannot be taken in bankruptcy.

Lawsuit Protection

If your child is sued (car accident, malpractice claim, liability claim, or business venture,) the assets you have given in trust are protected and cannot be taken in such lawsuit.  His personal assets are subject to creditors.

How does this protection work?

When you give a gift outright, it is under the full control of the beneficiary (in this case, your child.)  If your child has full control and ownership of an asset, it can be taken by his creditors.  If your gift is in a trust for the benefit of your child, distributions can only be made per the trust provisions.  “Provisions” is another word for “instructions.”  Your trust will provide that distributions can be made for the health, education, and maintenance of your child and not that of his creditors.  Thus, asset protection is created.

If you would like to give your child’s inheritance in a trust to grant asset protection, consult with a qualified estate planning attorney.

Kuhn & Kuhn Law Firm is a member of the American Academy of Estate Planning Attorneys.