Georgia residents who are planning their estates and wish to leave sizable assets to their children should consider creating trusts with trust protectors in place. Trust protectors are appointed to direct the trustees in how the trust assets should be administered.
By appointing trust protectors in their trusts, people can protect their children in case they are sued or get divorced. Assets held in a trust with a trust protector cannot be reached by creditors or divided in divorces. The child can be named as the trustee so that he or she can access the funds when they are needed. If a threat happens, the child’s access will be limited and revert to the trust protector until it is over.
Another option is to create an asset protection trust. This type of trust is irrevocable, and the control of the assets is transferred to a third party to serve as a trustee. The trustee will have a fiduciary duty to the beneficiaries of the trust, and the assets will not be reachable by creditors or considered to be a part of the marital estate in divorces. For very large estates, dynasty trusts can help families to preserve their assets for future generations while avoiding estate taxes.
People who want to plan their estates in a way that might protect their children and future generations may want to retain experienced estate planning attorneys who might assess their clients’ situations and determine how they might accomplish their goals. They may recommend different types of documents and draft them for their clients.