Why Establishing A Trust After Receiving An Inheritance Is So Important!

Losing a loved one is hard enough, but it can be even more traumatic when it leads to financial ruin. Unfortunately, this scenario often happens when people need help planning their estate correctly. In this blog post, we will explore the story of a client who lost everything after her husband’s death because they failed to establish trust. We will also discuss how a will or trust can protect your legacy and ensure your hard-earned assets are passed on to your loved ones.

From Living Her Best Life To Losing It All

The client that we mentioned in the introduction needed to prepare for the sudden loss of her husband. They had neglected to establish a trust, meaning she inherited all his assets outright and unprotected. She transformed her life entirely with newfound financial freedom, including marrying the stone cutter who carved her husband’s headstone. Unfortunately, her new husband made some poor business decisions with her money, and she lost almost everything. Her children were left with no inheritance, all because they did not plan their estate properly.

Our client’s story is a classic example of why it’s essential to establish a will or trust and plan for the inevitable. Many people ask us about the consequences of aging parents needing long-term care at home or in a nursing home. Studies have shown that three out of four people will lose the entire value of their estate because they have yet to plan for this. This means that the children of those aging parents will lose all of their inheritance, which mom and dad worked so hard for.

Establish A Will or Trust!

This doesn’t have to happen. Establishing a will or trust ensures that the assets you worked hard to accumulate will be protected and passed on to the right people. A trust can also offer additional benefits like avoiding probate, providing for your heirs’ health and education, and reducing taxes. A trust can also be set up to continue beyond your lifetime, protecting your assets for future generations.

A will is another option, and anyone with significant assets should establish it. A will is a legal document that outlines how your assets will be distributed, who will act as the executor of your estate, and who will be responsible for minor children if necessary. It’s essential to keep your will updated and ensure your executor knows where to find it.

Losing a loved one is never easy, but it can be made more challenging when there is no plan in place. Our client’s story illustrates what can happen when there is no trust, and all assets are inherited outright. The good news is that a will or trust can protect your assets and ensure that your legacy is passed on to the right people. We encourage everyone to take the time to establish a will or trust with the help of a professional, keeping it updated and informed of any changes that need to be made. Don’t risk losing everything you’ve worked so hard for; protect your legacy today.