Only Having a Will, Instead of an Asset Protection Trust,

can Waste Your Life Savings & Destroy Family Relationships

To understand the importance of an Asset Protection Trust, let’s consider an example of a common estate plan.  For example, if instead of having an Asset Protection Trust, let’s assume that you just had a Will.  Your Will leaves everything to your spouse, and when your spouse dies, to your children in equal shares.  But did you know if you had a Will like that any of the following could happen: 

1. Your Child Gets Next to Nothing & Everything Goes to the Ex-Spouse.  Let’s say you and your spouse leave your life savings, a million-dollar estate, to your only child. At the time of your death, your child is married and has four children. Your child takes the million dollar inheritance and puts it into a safe investment fund and includes the spouse’s name on the account. Six years later, your child gets divorced and depending on the circumstances, all or a significant portion of your life savings, the million-dollar estate, that you left your only child, could end up going to your child’s ex-spouse. An asset protection trust, if prepared properly, can prevent that from happening. 

2. Your Children Get Nothing & New Spouse Gets Everything.  Let’s assume you die and leave everything to your spouse.  Your spouse remarries and has the same type of Will—leaving everything to the surviving spouse, and when the surviving spouse dies, to your children in equal shares.  But what if your spouse dies before the new spouse? That could happen. The new spouse gets everything.  And then the new spouse can make a Will that does not include your children.  An asset protection trust, if prepared properly, can prevent that from happening.

3. Your Children Get Nothing & Stepchildren Get Everything.  Same circumstances in number “2.”, but when the new spouse changes the Will, the new spouse leaves your life savings to children from another marriage and your children get nothing. An asset protection trust, if prepared properly, can prevent that from happening.

4. Your Children Get Nothing & the Casino Gets Everything.  Let’s say one spouse has a bad gambling habit.  During your lifetime, you were able to intervene and make sure the spouse did not squander your life savings and ruin your family.  But if you die first, and are no longer there to regulate your spouse’s gambling addiction, what has taken you a life time to make can be lost in a short period of time and your children and spouse end up with nothing.  An asset protection trust, if prepared properly, can prevent that from happening.

5. Your Children Get Nothing & Everything Goes to a Lawsuit.  Let’s say you and your spouse leave your life savings, a million-dollar estate, to your only child. Your child puts the million-dollar inheritance into a safe investment fund. Later, your child makes a mistake while driving and causes an accident killing the other driver. Your child’s car insurance coverage is only $100,000. The claim against your child is for two million. A court could order your lifetime savings, the million-dollar estate, to be paid to the deceased driver’s family. An asset protection trust, if prepared properly, can prevent that from happening.

These are just some of the examples of how if you only had a Will, instead of an Asset Protection Trust, you could lose your life savings to your child’s divorced spouse, bad habits like gambling, lawsuits, and bankruptcy.  An asset protection trust can prevent that from happening and that’s why it’s an important part of an optimal estate plan.

Want Peace of Mind and a Complete Evaluation of Your Case? 

 Call (610) 365-4986 NOW or Click HERE to Schedule a Consultation with Chester County Pennsylvania Estate Planning Attorney, Michaelangelo L. Dippolito.  Click HERE to see the attorney’s background. 

Not Ready to Speak to an Attorney Yet?  No Problem.

Get this FREE Book and Consumer Protection Guide, Will, Power of Attorney, Living Will & Trusts in Pennsylvania, A Consumer Protection Guide on What You Need to Know to Protect Your Legal Rights.  Here’s Some of What’s in the FREE Book and Consumer Protection Guide: 

• Optimal Estate Plan to Protect Your Life Savings and Family Relationships
• Why Your Retirement Plan Should be in a Trust
• An Estate Plan for 2^nd Marriages & Blended Families
• 44 Reasons Why You May Need to Update Your Estate Plan
• Annual Review of Your Estate Plan to Make Sure it Works
• Arming Yourself with Knowledge is the First Step to a New Beginning

Still Not Ready and Want to Learn More Before You Move Forward?  No problem.

Click HERE for more information on Will, Power of Attorney, Living Will, & Trusts in Pennsylvania, and remember, we’re just a phone call away at (610) 365-4986.