If you are worried about where your assets may go after your death, a bloodline trust is one good way to ensure that they stay within your family.
This style of trust will determine where your assets stay, and will ensure that they get passed down to your children and their descendants accordingly.
Trust protection against divorce
First, what sort of life changes can prompt a person to opt for a bloodline trust? A top reason includes any change in marital status. Bloodline trusts take the high rate of divorce in modern couples into consideration, ensuring that no matter who a child marries and whether or not that marriage lasts, your assets will still go entirely to your child.
It also ensures that your assets go directly to your grandchildren in the event of your child’s death, rather than toward their spouse or their spouse’s family. This also applies to instances of remarriage.
Helping your child manage money
It also helps your child if they have trouble managing money. The University of Pennsylvania discusses the lifespan of the average inheritance. When spent irresponsibly or without much of a plan, the average inheritance actually only lasts a few years. Trusts let you plan out how the inheritance will get used, allowing you to dedicate it to important matters like health, education, support and living expenses specifically.
Finally, these trusts will also protect your children from creditors, as losing any lawsuit in the future could open up their inheritance to vulnerability from collectors. Only you have the power to terminate the trust in your lifetime, and a third party like a family member will take that duty after your death.