I have a few houses which I own (mortgage is 100% paid) and rent out. I'm getting old and want to give these assets to my son and daughter. I am concerned that my kids could have a chance of loosing these assets in a divorce etc. What is the best way I can give these to my kids while have them be as protected as possible from the separation of assets in divorce or other legal troubles.
You need a revocable living trust with a subtrust to manage the corpus and income after your death. The subtrust can be a spendthrift trust to protect your children from themselves and their creditors. You will need to appoint a responsible trustee, other than your children, perhaps a professional, to manage the trust estate after you have passed.
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A well crafted living trust can easily accomplish your goals. You can dictate the terms under which your children and other loved ones receive their inheritance, whether it be support payments, divorce protection, creditor protection or at specific milestones such as age or educational accomplishments. We are presenting seminars on these very topics starting next week; come out and learn more.
Living trust distribution to children to be held in trust and managed by independent trustee to protect them from their childish ways (spendthrift). Call a lawyer and go from there. Good luck my friend.
Properly prepared revocable trust with spendthrift subtrust will accomplish your intent.
Spendthrift provisions of subtrust protects the assets from being dissipated by children, seized by children's creditors.
The best way to pass down your assets to your children is through a revocable living trust. Once the trust is set up, you also need to make sure you fund the trust properly. If you give the assets outright, then there is not a lot of protection, a better way is to pass the assets down "in trust."
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