Many of our clients want to make sure that their assets stay in the family after they pass away.
In order to eliminate any potential risk to your wishes, we use trusts.
For example, a husband and wife have one daughter who is married to Mr. Smith. A tragedy occurs, and mother, father and daughter pass away in an accident. Son-in-law, Mr. Smith, now has custody of the 8 year-old grandchild, who inherits a substantial amount of money and real estate. Because Mr. Smith has custody, he controls the money for the child. Mr. Smith remarries. That inheritance is now at risk because of a new family dynamic.
A trust is a legal document that speaks for you at your death. It can be revocable or irrevocable. In the example stated above, we would use what we call a “no blood, no money” provision. Your trust would describe what happens where there is a tragedy in the family. The provision would state that if mother, father and daughter pass away, the trustee for your minor grandchild would be another family member that you trust, not your son-in-law. This provision separates the minor child’s inheritance from any possible risk by placing the assets in a separate trust that is controlled by another trusted family member.
If you already have a trust, this provision may already be included. If it’s not included, your trust can be amended to include the “no money, no blood” provision.
Rubino & Liang LLC is a risk management company and is not a law firm. Richard Rubino is affiliated with Rubino Law Group, LLC, a law firm. If legal services are necessary in order to implement an estate plan for a client, Rubino & Liang, LLC may refer a client to Rubino Law Group, LLC or to a law firm of an individual’s choice. Information provided by Rubino & Liang, LLC by an individual does not enjoy the protections of the client-lawyer relationship.