Can I Protect My Children’s Inheritance From Creditors & Lawsuits?
You can protect your children's inheritance from creditors, lawsuits, and divorce by using a Lifetime Asset Protection Trust, which holds their inheritance inside the trust for their entire lifetime rather than distributing it to them outright. Your children can even become their own trustee at a certain age, maintaining control of the assets while still keeping them shielded from outside claims.
How To Minimize Estate Tax?
High-net-worth families can minimize estate tax by using irrevocable trusts to transfer assets out of their estate, reducing exposure to the federal estate tax rate of 40% on assets exceeding approximately $12 million per individual. This planning requires surrendering some control over the transferred assets and must be carefully structured so the IRS does not still consider them part of your estate.
What Do I Do For Estate Planning If I Own Property In Another State?
If you own property in another state, that property must be transferred into your trust to avoid ancillary probate, which is a separate court process your family would face in each state where you hold real estate. Listing the property in your trust document is not enough. The deed must actually be transferred, typically with the help of an attorney in that state.
What If I Don’t Know What I Need?
You do not need to know what kind of estate plan you need before meeting with an attorney. Determining the right plan based on your family and assets is the attorney's job, and a planning session will walk you through the options using information you provide on an intake form.
Why Is Probate So Bad?
Probate is the court process your estate goes through if you die without a trust, typically lasting six months to two years and costing your family around 5% of your estate in fees and expenses. Beneficiaries receive nothing until the final court order, creating long delays for loved ones who may depend on the money you left them.
Will My Family Have To Pay Tax On Their Inheritance?
California does not impose a state inheritance tax, so the only concern is the federal estate tax, which currently applies to individuals leaving behind more than approximately $12 million (double for married couples). This threshold is expected to drop to around $6 million in 2026, and families above it can use irrevocable trusts to reduce their tax exposure.
