Many Georgia residents want to pass on assets to their loved ones and maybe even preserve assets for future generations. Asset protection could help ensure that family members have access to helpful funds when they need it, especially if individuals use trusts to specify when the funds can be distributed. However, it is important to plan in such a way that ensures loved ones will benefit as intended.
One issue that grantors could fall victim to is using language in their trust documents that is too specific. For example, a parent may only want his or her child to receive a few hundred dollars a month from the trust and not include any details indicating that the amount could change depending on the need or circumstances. As a result, if the child later needs more funds to address a medical emergency or other similar situation, he or she may not be able to obtain them because the trust terms do not allow it.
Though certain instructions may seem applicable now, it is important to remember that anyone’s circumstances could change. If a trust does not allow some margin for adjustment, the trust may cause more trouble than benefit for the beneficiaries. Some flexibility could better ensure that funds are not kept under unnecessary lockdown from loved ones who need them.
Trusts can offer various options for asset protection, but they need to be created in a manner that suits the family’s needs now and in the future. It can be difficult to predict what needs could arise in the future, which is why avoiding language that is too specific or even overly broad is wise. If Georgia residents would like assistance with their trust needs, contacting knowledgeable estate planning attorneys could be helpful.
