What is It?
Bloodline planning makes sure that the inheritance you leave your children or grandchildren gets to them, regardless of creditors, predators or divorce.
Why do you need one?
You might need a bloodline trust for your children or grandchildren if you have any of the following situations:
- Your child is a great person but isn’t good with money
- Your child’s spouse is a spender
- Your child may be facing a divorce
- You’re not sure about your child’s new marriage
- Your child has credit problems
- You want to set aside a pension-like income stream for your child when you’re gone
- Your child might be sued – think doctors and surgeons who are sued routinely today
- Your child is married to someone with “big ideas” for your money, think fishing lodge
- You want to make sure your grandchildren have money set aside for their college fund
A Heritage Trust may be the answer.
The Heritage Trust is a sophisticated estate planning vehicle used to protect an inheritance for multiple generations. Heritage Trusts are created by the parents who normally create one for each child. It is generally unfunded until the death of both parents. At the death of the last parent, each Heritage Trust is funded by the child’s share of the inheritance and is used for the benefit of that child (the Primary Beneficiary) as needed. At the death of the child the trust continues on for that child’s blood children (the Secondary Beneficiaries).
Of course, it does not have to be set up by parents for children, it can be set up by anyone and for nieces, nephews, or any individual that they wish to leave a protected inheritance.
Why protect the inheritance?
Most estate plans only solve the problem of getting from point “A” to point “B”. In other words, the job of most estate plans end once the inheritance goes from you (point A) to your kids (point B). But what happens after your children receive the inheritance and then something terrible happens to them, like a divorce, bankruptcy, or lawsuit? What happens if your child lives to receive the inheritance but shortly thereafter dies? In most plans these questions are left unanswered and often the inheritance is left exposed to unfortunate events that might befall the child like a costly divorce, business venture failure, lawsuit, or death.
*Dually certified by the National Elder Law Foundation as Certified Elder Law Attorneys and the Ohio State Bar Association as Specialists in the Area of Elder Law.