Cincinnati Estate Planning Attorney - Will, Trust, and Probate
  • Home
  • About
  • Estate Planning Articles
    • Will >
      • Executor
    • Trust >
      • Revocable Living Trust
      • When is a Trust Necessary?
      • Creditor Protection Trust
      • Special Needs Trust
      • Asset Protection for Blended Families
      • Six Reasons to Create a Revocable Living Trust in Ohio
    • Living Will
    • Probate
    • Estate Tax
    • Power of Attorney
    • Beneficiary Designation
    • Other Estate Planning Topics
  • Contact Elliott Stapleton

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.
Elliott Stapleton - Cincinnati Estate Planning Attorney | 123 Boggs Lane, 1st floor, Cincinnati, Ohio 45246 | Phone: 513-334-0099
CMRS Law Hyde Park 2101 Grandin Rd Suite A, Cincinnati, OH 45208 Phone 513-672-6103 

ADVERTISEMENT ONLY. GENERAL INFORMATION ONLY, NOT TO BE CONSTRUED AS LEGAL ADVICE. ALL LEGAL DECISIONS SHOULD BE ADDRESSED WITH LEGAL COUNSEL
​

2016 et seq. © Copyright Elliott Stapleton, LLC. All rights reserved.

The content on this site is for information purposes only. 
No one should rely on the internet, including this or any other website, for legal advice. 
Communicating through this site does not create an attorney client relationship and your submission is not a confidential communication.

  • Home
  • About
  • Estate Planning Articles
    • Will >
      • Executor
    • Trust >
      • Revocable Living Trust
      • When is a Trust Necessary?
      • Creditor Protection Trust
      • Special Needs Trust
      • Asset Protection for Blended Families
      • Six Reasons to Create a Revocable Living Trust in Ohio
    • Living Will
    • Probate
    • Estate Tax
    • Power of Attorney
    • Beneficiary Designation
    • Other Estate Planning Topics
  • Contact Elliott Stapleton