How can I protect the inheritance of my children or beneficiaries if they have significant debts or judgments against them when they inherit from me or after they inherit from me?
When you leave an inheritance outright to your children or beneficiaries, the inheritance is likely to be subject to the claims of their existing or future creditors. By leaving their inheritance in a spendthrift trust for them, and naming someone other than the child or beneficiary of the trustee, you may be protecting the inheritance from the creditors of the beneficiary.