You probably have a good idea where you want your assets to go after you pass away, first to your spouse and then to your children and named beneficiaries. But if you do not engage in proper estate planning, your wishes may not be fulfilled.
What is a Bloodline Trust?
A Bloodline Trust is a type of trust that protects assets solely for the blood descendants of the person who creates the trust. It is a revocable trust that you set up now for your children, so that your assets will be divided into separate trusts (one for each child). Each separate trust will be used only for the sole benefit of that specific child and their blood descendants.
What makes this so beneficial? Well, let’s consider for a moment, what would happen to your children’s inheritances if they were to marry and then get divorced, or start a business that ultimately fails? In both cases, part or all of a child’s inheritance could be lost and end up in the hands of strangers.
These situations happen every day. An example was that of Alex & Susan, who worked closely with a Real Estate agent to find a property that would allow them to provide individual plots of land, in a compound-like layout, for each of their children to build a forever home on, ultimately keeping the family close by one another.
This real property that Alex & Susan purchased was gorgeous land broken down into 4 parcels, one for each of their 3 children and one for themselves. At the time, the future was unforeseen that their youngest would end up divorcing. However, because Alex & Susan had a Bloodline Trust in place, their son was able to keep his parcel of property. Fortunately, they did not have to lose part of their private property.
When money and assets are left to a beneficiary in a Bloodline Trust, (which becomes irrevocable after Trustmaker passes away), their creditors cannot access the funds to satisfy debts, nor can their spouse take any of it in a divorce. In fact, assets held in a Bloodline Trust can only be used for the benefit of the beneficiary and his or her blood descendants. Thus, it can ensure that assets you leave behind with your children will stay in your family to benefit future bloodline generations to come.
__________________________
For tips and advice, look for The Property Sisters segment each month in Stroll. They are always here to answer your questions:
Bridget Gricus (708) 814-6253, bridgetgricus@gmail.com
Eileen Kerlin Walsh (708) 448-5169, Eileen@mdvornik
