In order to ensure that you can provide for the most important people in your life should the worst happen, this week Prestige Tax and Trust Services answers a question you must ask yourself every day; how can I protect my children’s inheritance?
Every Parent’s Worst Nightmare
As a parent, the financial well-being of your children is a concern that you need to consider at every turn. If you don’t, the worry that serves as every parent’s worst nightmare could come to life.
If the worst should happen, and you pass away before your children can reach an age where they can provide for themselves, you leave them vulnerable. That’s why you need to plan for the worst.
What does it Mean to Distribute Your Assets Absolutely?
In most cases, parents choose to do so by distributing their assets absolutely. This means that children receive their parents’ assets i.e. cash, property etc. as a direct lump sum payment, via a will.
However, when assets are distributed to beneficiaries absolutely, sometimes they can get lost along the way. This is because when they are distributed absolutely, assets then become considered part the beneficiaries (your child’s) estate. This leaves them open to a number of risks from taxation and creditors to future divorce settlements.
How Does Bloodline Planning Work?
In cases like these, the sum your children are set to receive gets put at risk. That’s why if you truly want to protect your children’s inheritance, you need to invest in bloodline planning.
Bloodline planning acts to protect the entirety of your children’s inheritance through the strategic use of trusts i.e. the pilot trust. If you use the appropriate series of trusts, you can protect your assets from a number of risks to ensure that your children receive their full inheritance.
Furthermore, through the use of trusts you can protect assets such as the family home and business. Therefore, if you develop a condition that requires long-term care, these assets be drawn on to fund the cost of that care, ensuring your children receive their full inheritance.
Invest in Bloodline Planning With Prestige Tax and Trust Services
If you want to ensure that your children receive their full inheritance, you need to invest in bloodline planning. Prestige Tax and Trust Services has a team of professionals that are experts when it comes to bloodline planning, and we’d be happy to use that expertise to ensure you can protect your children’s inheritance.