Senior Spectrum
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Dec 2007
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Wealth Planning
What's Important in Your Life?
Facing difficulties in life sharpens our focus. When tragedy strikes, we recognize what's important in our lives: Our family, our friends, and our values.
Henry Wadsworth Longfellow, the famous 19th century American poet, said “Into each life some rain must fall.” We have all had “rain” in our lives. Our tragedies typically are quite personal: the death of someone close to us, a life-threatening illness, or a violent crime. Sometimes our tragedies are shared by countless others: Hurricanes, wildfires, earthquakes, terrorist attacks, tornadoes, or floods. But, regardless of the type of tragedy, our thoughts immediately go to what's most important in our lives.
“Estate planning” deals with the passing of assets from one generation to the next. But, the next generation in estate planning, “Legacy Planning,” deals not just with passing material wealth, but also what's most important in our lives. Legacy Planning relates to passing our “wealth” in the form of our values, wisdom, guidance, and protection, as well as monetary assets. We recognize this when we are confronted with important events.
A comprehensive living trust we call a Family Wealth Trust passes on your true wealth. The Family Wealth Trust encompasses protection levels for your loved ones' inheritance with the Family Access Trust and the Family Sentry Trust. Either way, each trust protects your children better than just handing them the nest egg you worked a lifetime to create.
The Family Access Trust provides divorce protection by keeping the inheritance separate from your child's other assets. For this reason, the trust can provide protection for your child even when you cannot be there to do so yourself. This trust still gives your child unfettered access to the inheritance, which may be the perfect choice if your child is mature and savvy.
The Family Sentry Trust offers additional levels of protection. The Family Sentry Trust offers all the divorce protection of the Family Access Trust, but it also provides another layer of creditor protection and management. When you can no longer be there to protect your children, the trust may be the next best thing. For example, the Family Sentry Trust can protect your child's inheritance in the following situations:
- A political activist going door to door slips on your son's steps and files suit against him.
- Your daughter lends her car to a friend who is involved in accident because the brakes failed. Both her “friend” and the occupants of the other car involved file suit against your daughter.
Regardless of the protection level you choose, a Family Wealth Trust can shield those left behind from the risks of everyday life, while passing on your true legacy and values. A qualified estate planning attorney focusing on Legacy Planning can help you achieve your goals.
(Mr. Anderson is a member of the American Academy of Estate Planning Attorneys, and has been engaged in the practice of law for the last 27 years. For more information or to attend an upcoming seminar, call (775) 823-9455 or www.probatebusters. com)