Do I need a trust? That’s what Siedentopf Law is discussing in the sixth (and final) installment of our video series on trusts. Today, we’re talking about creditor protection for your beneficiaries.
TRANSCRIPT: Hi, I’m attorney Sarah Siedentopf, I practice estate planning and probate in Atlanta, Georgia. Do I need a trust if I’m worried about creditor protection for one or more of my beneficiaries? If you just give money outright to someone who has a spending problem or significant creditor issues, you know what’s going to happen to that money. It will disappear and maybe it will even go to pay old creditors and not benefit your loved one in any way whatsoever. If you are concerned about this or perhaps concerned about giving a gift to a child that then might later be considered marital property if they commingle it and in the case of a divorce the ex-spouse might receive part of the gift that you gave your child, a trust makes sense. If you place the property in the trust for the benefit of that person, you can control who receives the benefit of that trust. You can make sure that it doesn’t go to old creditors and you can make sure that it is properly used for your loved one’s benefit: for their health, for their housing, for travel, or education however it is that you intend for it to be used without worrying that someone else will get it. So if creditor protection is something that you are concerned about for your beneficiaries, then yes, you should consider a trust. If you’ve got more questions about this, I’d love to talk about it.
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