When it comes time to pass your assets along to loved ones, you do not want to worry that the estate might be dismantled by estate taxes, lawsuits, creditors, gift taxes, or other disruptive factors. Fortunately, state and federal laws provide many means to protect your heirs through the use of different types of trusts.

Each situation is unique, so there is no single type of trust that is advisable for everyone. A knowledgeable estate planning attorney could explain the different options for trusts and help you select the right trusts to protect your heirs in Lombard.

A Variety of Trust Options

Trusts have evolved over the years to take advantages of changes in tax laws. While people in Lombard traditionally used trusts as a way to manage assets after their death, now it is very common to establish “living” trusts that hold assets during the grantor’s lifetime.

Some trusts are irrevocable, so once the grantor transfers property into the trust, it may not be removed, and the terms of the trust usually may not be altered. When considering trusts to protect your heirs in Lombard, it is essential to understand the terms of an irrevocable trust and the full ramifications of those terms before committing to the establishment of that trust.

Examples of trusts that could protect assets for heirs or reduce estate or gift taxes include:

A dedicated trusts and estates lawyer could explain the full range of options and how they operate.

When There are Concerns About Heirs’ Ability to Handle Money

Not everyone is blessed with the ability to manage money. Excess generosity, enthusiasm for life, and a host of other personality traits often cause some people to make poor choices with their money.

To protect heirs from their own habits, many people in Lombard choose to create what is commonly referred to as a “spendthrift” trust. Instead of receiving a lump sum of cash, the beneficiary of this type of trust would receive distributions in accordance with instructions. For instance, the terms of the trust to protect heirs in Lombard could specify that the trustee should only disburse funds to pay for specified living expenses.

Protecting Heirs with Special Needs

Trusts provide an effective method to provide for the future needs of an heir who may suffer from a physical or mental disability. If a legacy gift would render that individual ineligible for government benefits such as Supplemental Security Income, it is possible to establish a special needs trust designed to provide benefits to a special needs individual without interfering with qualifications for government benefits.

Trusts to protect heirs in Lombard could be tailored to fit the needs of a specific individual and their situation. Creating a specialized trust plan might provide a sense of confidence knowing that necessities would be covered in the future.

Learn More About Trusts to Protect Your Heirs in Lombard

In today’s regulatory and financial climate, the question is not whether to set up trusts to protect your heirs in Lombard but rather which types of trusts to use to protect those heirs. When you establish a trust, you get to decide the terms to fit your unique goals.

Whether you are looking to reduce estate tax liability, balance charitable giving with the provision of support to your heirs, protect heirs from unnecessary asset depletion, or simply to learn more about your options, it is wise to consult a knowledgeable trusts and estates lawyer in Lombard. An attorney with estate planning experience could analyze your objectives and help create a custom trust plan to protect your heirs.