Establishing a bloodline trust is a firm way to ensure that your assets remain in the hands of your family.
A bloodline trust dictates where your assets remain, namely in the hands of your children and their descendants. There are major life changes that may prompt you to consider a bloodline trust.
Change in marital status
Given the high divorce rates, you can justify concern over who your children decide to marry. A bloodline trust ensures that your children’s inheritance remains in their hands in the event of a divorce.
Death and remarriage of your child’s spouse
In the event of your children’s death, anything they inherited from you likely goes to their spouses. If they then remarry, the inheritance you left to your children may end up in the hands of the new spouse. A bloodline trust ensures that your children’s inheritance goes directly into the hands of your grandchildren.
When someone needs help managing money
Not everyone handles money responsibly. When spent frivolously, the average inheritance lasts only a few short years. A trust allows you to design a plan for the inheritance, ensuring that your child uses it for education, healthcare, living expenses, or any other forms of support.
If one of your children loses a lawsuit, any inheritance is vulnerable to creditors. A bloodline trust protects it from claims.
During your lifetime, only you have the power to terminate a trust. However, control typically falls to a third-party trustee, such as a financial institution or another family member.