SPECIAL ESTATE PLANNING CONSIDERATIONS PART 2

• Bloodline Trust. If a parent leaves money to a child, that money is subject to claims of the child’s creditors, claims of a divorcing spouse, or the potential for the child to squander the money.  A way to avoid these problems is to leave money to something called a “Bloodline Trust.”  This means that the money is protected for the children and is not subject to claims of creditors or  divorcing spouse, and there is no likelihood that the money will be squandered, so long as there is an independent trustee.

• Blended Families. Does either spouse have children by a previous marriage or relationship?  If so, most parents want to take steps to protect those children.  Some spouses want their current spouse’s children to share in their estate, and others do not.  Sometimes after the death of the first spouse to die, the surviving spouse changes his/her Will to disinherit the children of the first spouse to die.  A trust can be designed to protect an individual’s child or children from a previous marriage or relationship.

• Family Member Problems. When planning an estate, one question to consider is whether any of the intended beneficiaries, including family members, have problems with:

• Drug addiction
• Alcoholism
• Spendthrift
• Marital difficulty
• Financial difficulty
• Can’t hold a job

Trusts can be designed to protect those individuals.