How Trusts Can Protect Your Assets From Probate and Creditors

A handwritten note, a family business, a trust, and a disputed estate all demonstrate how quickly estate planning can become complicated when the right protections are not in place.Todd Lutsky and Susan Powers examine two court cases that highlight the importance of proper estate planning, trust funding, beneficiary designations, and business succession planning. They also explain a strategy involving IRAs and testamentary trusts that may help certain families address nursing home exposure, estate taxes, and asset protection.They cover:What happens when a handwritten note appears to contradict an existing willHow undue influence can create problems when family relationships and inheritances collideWhy business owners should consider succession planning before a family dispute occursThe difference between probate assets and assets that pass through a trustHow trusts and beneficiary designations can affect creditor protectionWhy properly funding a trust is just as important as creating oneHow inherited IRAs can create tax and estate planning complicationsWhen naming an estate as an IRA beneficiary may be considered alongside a testamentary trustHow a trustee can handle the sale of a home after the trust creator diesThe key takeaway: estate planning is about more than deciding who inherits your property. How assets are titled, where they pass at death, how beneficiary forms are completed, and whether trusts are properly funded can affect probate, taxes, creditor exposure, and ultimately how much control and protection your family has after you are gone.