Florida Inheritance Protection Trust Lawyers

Serving Residents of Palm Beach, St. Lucie, Broward, Okeechobee, Martin Counties, and the Surrounding Communities

 

How Can an Inheritance Protection Trust Help Me?

Keep Assets in your bloodline.

Protect Your Child’s Inheritance from Going to In-Laws.

Protect Your Child’s Inheritance in The Event of Divorce.


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What Is an Inheritance Protection Trust?

An inheritance protection trust (also commonly referred to as a bloodline trust), is a separate, freestanding trust designated as a beneficiary of your revocable trust, in which you name your child or third party as trustee, and your child as beneficiary wen you die.  These trusts provide your child with complete access to the income and principal of the trust during his lifetime, for the sole benefit of your child and grandchildren.  A separate inheritance trust should be established for each of your children.

When your child passes away, the unused portion of the inheritance passes to your child’s children, not to your child’s spouse.  If your child does not have children or does not wish to leave funds to his children, the funds may be left instead to your other children or grandchildren.  The bottom line is that the money you are leaving stays in your bloodline. 

Can I Keep My Son-in-Law or Daughter-In-Law Out of My Estate?

Yes. Florida is an equitable distribution state, meaning that property is not necessarily divided 50/50 during a divorce.  Instead, marital property is divided “fairly” between spouses.  While an inheritance is typically viewed as non-marital property (and is thus not subject to division) if kept separate from other property, when married couples co-mingle their funds, including inheritances, it is possible for these assets to become part of the marital estate, making an in-law potentially entitled to a fair portion of the inherited proceeds.

Fortunately, by setting up an Inheritance Protection Trust, your hard-earned assets will be clearly separated, and not co-mingled with your child’s spouse. This ensures that the inheritance you leave benefits your child and subsequently your grandchildren, without risking becoming marital property subject to division.

How Can an Inheritance Protection Trust Help Me?

While there are many reasons for wanting to create an Inheritance Protection Trust, we firmly believe that one of the most pragmatic and beneficial ways to protect a child’s inheritance from a spouse (or ex-spouse) is through the establishment of an Inheritance Protection Trust.  This is especially important if:

  • Your child’s spouse has children from a previous marriage.
  • Your child’s spouse remarries after your child dies.
  • The trust can keep your hard-earned assets from falling into the hands of your in-law, your ex-in-law, and your in-law’s own children.

Suppose Your Child’s Spouse Wants the Inheritance Trust Funds Co-Mingled with Marital Funds?

The money you leave in an Inheritance Protection Trust is an outright inheritance for your child. It reduces marital discord over the funds, because your child can “This is money my parents left for me, my children, my siblings and their children in the trust. I cannot legally commingle it with you.”

Your child’s spouse will not be “left out in the cold.” Your child and spouse can still provide for themselves. Your child’s other assets and the spouse’s assets will pass to the surviving spouse. But with the Inheritance Protection Trust, the money you are leaving your child will stay in your bloodline.

What Are Some Advantages to Forming an Inheritance Protection Trust?

There are many advantages to forming an inheritance trust, including (but not limited to):

  • Keeping assets in your immediate family (i.e., bloodline)
  • Shielding assets from in-laws
  • A child can be granted control over a trust
  • A child (acting as trustee) can distribute principal to benefit himself or herself or to benefit family descendants
  • When the child dies, the trust assets pass to blood relatives
  • The trust can be revoked during your lifetime

Call Today to Schedule a Free Consultation with Our Attorneys.

Safeguard your assets with the help of our experienced Florida estate planning lawyers.  Call our office today to schedule a complimentary consultation to learn more about inheritance protection trusts.


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Client Review

When family and medical issues necessitated changes to our estate plan, Karp Law Firm went out of their way to see that everything was taken care of as quickly as possible. Thank you to all at the firm!

5 Star Review – Maryann