You may anticipate a big inheritance and have a judgment creditor. How
can you judgment-proof your inheritance? One solution is to disclaim your
inheritance. Any beneficiary can disclaim their inheritance. This passes
the inheritance on to the next generation. A disclaimer is a particularly
good strategy when you prefer your children to receive your inheritance
rather than risk losing it to your creditor.
A disclaimer is a complete and unqualified refusal to accept rights or
property. You can disclaim gifts and inheritances. Your alternate beneficiaries
may be your children, spouse, or anyone else you designate to receive
the gift. For a disclaimer to be effective, observe several requirements:
- Put your disclaimer in writing.
- You must not have previously accepted any part of the property (or any
benefits of ownership).
- Your disclaimer must be received by the transferor within nine months from
the date of the transfer or the date the document creating the interest
(the bequeath or gift) is made.
If you want to bequeath wealth and protect your beneficiaries, change your
will. Direct the inheritances to a protective entity that insulates the
inheritance from the beneficiaries' creditors. For example, you may
direct the inheritance to:
- Domestic testamentary trust with spendthrift, anti-alienation, and discretionary
- International Asset Protection trust.
- Limited Partnership or LLC.
The legacy directed to a protective entity can be structured so that the
full benefits of the gift or bequest can still be enjoyed by the beneficiaries.
YES, YOU CAN LOSE EVERYTHING!
You may think that your wealth is safe and that you don't need protection.
But don't delude yourself and accept reality — for every 60
minutes you spend making money, spend 60 seconds thinking about how to