Passing assets on to loved ones is important for many Arkansas residents. They may know that their wills can help them do this, but it may be worthwhile to consider trusts more closely. Using this planning tool can offer more protection than wills and ensure that the beneficiaries receive the assets when the time is right.
If a person wants to leave assets to someone who has not yet reached the age of adulthood, the underage beneficiary cannot directly receive those assets. In many cases, the court will appoint someone to manage the property until the beneficiary comes of age. However, setting up a discretionary trust could ensure that a trusted person is appointed to handle the assets until the right time.
Of course, a discretionary trust does not just benefit minors. This trust can help adult beneficiaries have protection from creditor claims and from losing those assets in the event of a divorce. Because the beneficiary does not have control over the assets, they are not considered part of his or her estate or direct property, which means that creditors or soon-to-be ex-spouses cannot make claims to obtain the assets.
Trusts can enhance estate plans in many ways, and most people want to ensure that their loved ones end up with the intended bequests and not creditors or exes. If Arkansas residents are interested in setting up these protections for their loved ones, they may want to gain reliable and applicable information. Discussing this topic with experienced attorneys could help them gain the knowledge they need.