Estate Planning has evolved in new ways these days. Families can now be protected beyond just a simple Will. Trusts are a great way to protect assets for future generations. You can choose the type of trust to establish, based on the needs of the beneficiary. This allows you and your children just the right kind of protection and control.
Family Asset Trust Is a Sophisticated Tool
One type of trust is a Family Access Trust, or FAT. It keeps separate your children’s personal finances from their inheritance monies. Since its funds are not commingled with other marriage assets, this type of trust is ideal in most states if one of your adult children is going through divorce proceedings. A FAT allows your own child the ability to use funds from his or her inheritance, yet it ensures that a former spouse cannot walk away with that money. It works if your son or daughter is financially responsible and savvy.
This type of trust gives more control to a beneficiary. He or she can become Trustee in name and thus gain complete control over decisions involving the Trust. The Trustee can withdraw assets at the time of his or her own choosing. A FAT trust will also provide protection in divorce cases in most states, because it is not commingled with other marriage assets.
Unsworth LaPlante, PLLC in Vermont is knowledgeable about the differences in Trusts and Estate Planning. Please come see us today so we can help you make the best decisions.