If the example below applies to you then you must adopt a trust or a will to solve the problem and protect your loved ones. If you know somebody who might be subject to the example below please forward this message to that person.
All of Joan’s property including her retirement plan is worth $500,000. Joan has one child, Allie, who is five. Joan dies. Allie inherits everything. This creates two problems: (i) Allie is a minor so she cannot deal with her inheritance so the family must pay $3,500 or more to hire an attorney to file a lawsuit asking the court to appoint a conservator who has the duty to manage Allie’s assets until she is 18, and (ii) when Allie is 18 she will have total control of her inheritance.
It is not a good idea to give a young person control of a lot of money. The problem illustrated by this example arises frequently when a parent has life insurance that could go to one or more minor children. You don’t want an 7 year old to inherit $100,000, $500,000 or more of life insurance that will become owned and controlled by the 7 year old when he or she becomes 18.
Solution: Joan should have created a trust that named Allie as the beneficiary and a trusted family member or trust company as the trustee to manage the assets. The trust could make Allie the trustee when she is older and wiser.
Our Two Estate Plans
Our two estate plans described in detail below give you the option to pick the plan that is best for you. Our estate plans are:
- Silver Estate Plan: $1,997 for a single person and $2,497 for a couple. This plan does not include a revocable living trust. To purchase the Silver estate plan complete our Silver Estate Plan questionnaire.
- Gold Estate Plan: $2,997 for a single person and $3,497 for a couple. This plan includes a revocable living trust that provides that the assets in your trust pass automatically on your death (or on the death of both spouses if you are married) to an irrevocable beneficiary controlled asset protected trust created for each of your heirs and their descendants. Your heirs inherited assets in their trusts will be protected for life from their creditors, ex-spouses and bankruptcy courts. Each heir's trust is also a "dynasty trust" that creates a trust for your heirs children on the heir's death. See "A Smart Option for Transferring Wealth Through Generations: The Dynasty Trust." If you bought our Gold LLC you get a $500 discount off the price of this estate plan. To purchase the Gold estate plan complete our Gold Estate Plan questionnaire.