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.
For Asset Protection, Can an Inheritance Also be Directed to a Protective Entity on Behalf of a Beneficiary?