Whether you are single or married, having an estate plan is important for protecting your assets and inheritance from divorce, bankruptcy, lawsuits, or creditors. It can also help ensure that your loved ones receive their inheritances in a way that meets their needs.
Everyone should have an estate plan with a will and other documents that specify how your assets should be distributed when you pass on. These documents can also define how you would like your loved ones to be cared for if you become incapacitated and can no longer make decisions for yourself.
Many life events can cause a person to reassess their estate plan, such as when they have children or are diagnosed with a medical condition. These changes can impact the type of documents that need to be included in your estate plan.
If you are a new parent, you may want to include a trust in your estate plan to help protect your child’s assets should something happen to you or your spouse. This is especially helpful if your child has special needs and you don’t want them to become a dependent on you in the event of an unexpected illness or injury.
A skilled attorney can help you decide which type of trust best fits your family’s needs. There are several types of trusts that may be a good fit, including irrevocable life insurance trusts and charitable remainder trusts.
Another way to protect your child’s inheritance from divorce is to set up a discretionary trust that gives your child a choice as to who can take the property if they get a divorce. This option is especially useful if you have multiple children or grandchildren.
You should also consider a lifetime asset protection trust. This type of trust allows you to transfer assets to your children while they are still young and avoid the probate process in the future. The assets in the trust can then be protected from divorce, bankruptcy, lawsuits, and other creditors during their lifetimes.
It is important to speak with an estate planning lawyer about how to create a trust for your child that will meet their needs while they are alive and then be beneficial to them upon your death. This is a complicated and often confusing process, so it is essential to speak with an attorney who can explain the details of your specific situation.
In addition to the protections a trust can offer your child, a trust can also be helpful to minimize tax consequences. An experienced family attorney in Miami can help you determine how much of your estate should be left to your child in order to minimize taxes on their inheritance.
The estate planning attorneys at FCA understand the complex issues that can arise in a divorce, so they are prepared to assist you with creating an effective plan for your unique circumstances.
A solid estate plan includes a will, financial power of attorney, healthcare power of attorney, HIPPA authorization, memorial instructions, and a durable power of attorney for health care. All of these documents serve as a rulebook for your agent to follow when they are acting on your behalf and reduce the likelihood of your agent making mistakes that can cost you money or ruin your estate.