For Asset Protection, Can an Inheritance Also be Directed to a Protective Entity on Behalf of a Beneficiary?
Posted on Aug 15, 2016 11:10am PDT
Certainly. And it’s often wise to do so. A testator who wants to
safely bequeath wealth to a beneficiary should direct the inheritance
to any entity that would insulate the inheritance from the beneficiary’s
creditors. For example, the gift may be bequeathed through: 1) a domestic
testamentary trust with spendthrift, anti-alienation and discretionary
provisions; 2) an integrated estate planning trust internationally; or
3) a limited partnership or LLC. In each instance, the beneficiary can
enjoy the full benefits of the gift or bequest as the beneficiary, partner
or member of those entities. A beneficiary of a large inheritance must
look ahead to protect their
future wealth and suggest these possibilities to those from whom they anticipate gifts.