Thursday, June 5, 2014

Choosing A Will Over An Asset Protection Trust

By Nora Jennings


It is a very common thing to hear that relatives and siblings of one family fighting over an inheritance or disputing over a will. It is also common for an old person not to be taken care of by his or her family. At that old age they are abandoned and their wealth fought for, simply they are forgotten. That is why many people are taking asset protection trust to protect their wealth and make sure that it is inherited by the right people once they are gone.

So what exactly is this asset protection. This is whereby an individual safeguards his or her property discretely against creditors. It is also a way of ensuring that your beneficiaries will have something after you are gone, it is somehow like a will . It is therefore difficult for a creditor to get hold of the debtors property and settling matters on a friendly basis with them will be most favorable.

The good thing is that there is discretion. Nobody will know what you have secured, it could be your businesses or house, and who the beneficiaries are. This is safe as there will be no quarrels or chaos about your property and once you have named the beneficiaries no one can change them if you are not willing to even when they go to court to protest.

It is very unreasonable for children to assume that they have a right to inherit their parents property. These are the kinds that would abandon their parents at an old age and forget them and concentrate on how to spend their money. That is why nobody should make an assumption on their wealth that it will be automatically taken care of. That is why safeguarding your property for yourself, family and a generation to come is very important.

In a will, matters such as funeral, education for your children or any other thing you may want to address is allowed while the latter is all done by a trust company. Basically these companies will do everything for your beneficiaries before you die. This is also another case where will ask yourself which one is better for you.

In order to keep creditors from tampering with your property you will have to apply your debts to a trust. In this way the only thing that the creditors can do is negotiate with you in favorable term for you to pay them. This is not such a bad thing at the end of the day you both get to win.

You will remain in full control of your property until death is when the successor of your property can be handed over your position. While you are still the trustee you can be able to change, that is amend or revoke, anything just like in the case of a will.

Your family will not be able to go to court to contest your wishes like in wills. They do not need to pay a lawyer for this as it will be waste of time, the trust has every thing covered and your wishes are final, they are irrevocable. So it is up to you to decide how you want your property to end up once you are gone. Though a trust is good it is costly but know first what the disadvantages are before you make up your mind.




About the Author:



No comments:

Post a Comment