It is generally estimated that more than half of all Americans have absolutely no estate planning documents. This can potentially create a lot of hassles for your loved ones.
But even those Americans with very good estate planning documents often fail to focus on asset protection for their children and other beneficiaries. If you simply leave assets to your beneficiaries without any kind of ongoing trust arrangement, those assets can generally be reached by their creditors with little effort.
We now recommend dynasty trusts for many of our clients. These trusts are not as exotic as the name might imply. They simply allow your children and other beneficiaries to hold assets in a continuing trust arrangement. This can provide better protection in the event of a divorce; and it can also provide better protection from future creditors of the beneficiaries.
Providing some added protection for the assets that you leave to your loved ones can be an important gift to them.