Creditor Protection Trust

Children who are unable to manage his or her financial affairs.

Despite a parent's best efforts, some children have a personality trait that would not be well suited to magnification. This could be due to an unreasonable reliance upon the honesty of others, gambling problems, drug/alcohol addiction, or simply an absentminded disposition.  Even when a child has recovered from the conditions listed, an influx of funds could push him or her into a relapse.

This type of Trust stays in place as long as your child is alive.  It gives the Trustee full discretion on distributions other than for health, education, support, and maintenance. Thus, if your child needs funds to pay a gambling debt, the Trustee can refuse such distribution. This can apply to all children or only a specific child.

Children who have substantial professional liability business debt

Children on the other side of responsibility spectrum may also need protection. This includes small business owners and professionals with personal exposure.

If a child opens a business, there is typically a large amount of debt and personal liability. Similarly, some professions are lighting rods for lawsuits such as physicians, dentists, nurses, chiropractors, financial advisers, architects, engineers, lawyers, and accountants.

To ensure the inheritance you built does not go to your child’s creditors, the trustee will have the discretion to distribute when there is no risk the distribution will be attached by a creditor.

For Example, if you have a $100,000.00 life insurance policy, and the child is about to file bankruptcy at the time of your death, the life insurance proceeds would be held in Trust until after the bankruptcy is resolved.