Understanding a Bloodline Trust and Its Benefits

You probably have a good idea where you want your assets to go after you pass away, first to your spouse and then to your children and named beneficiaries. But if you do not engage in proper estate planning, your wishes may not be fulfilled.

What would happen to your children’s inheritances if they were to marry and then get divorced, or start a business that ultimately fails? In both cases, part or all of a child’s inheritance could be lost to divorce or bankruptcy and end up in the hands of strangers.

These situations happen every day, but they can most often be avoided. A Bloodline Trust is one way to ensure that your assets remain in your family, with your children, grandchildren, and great-grandchildren.

At our law firm, we help clients set up Bloodline Trusts to make sure that their hard-earned assets stay in the family long after they have passed away, for generations to come. Call us today to arrange a consultation with an experienced Virginia estate planning attorney.

Concerned About Your Children’s Inheritances?

There are four general concerns we have when leaving inheritances to our children:

1. They can be squandered due to gambling, drug, or alcohol addiction, or bad money management;
2. All or part of a child’s inheritance could be lost to his or her creditors or lawsuits filed against them;
3. If a child marries and then gets divorced, half of their inheritance could be lost to their spouse during the divorce; and
4. When a child passes away, his or her spouse could inherit their estate. If that spouse then gets remarried and subsequently passes away, the inheritance you left for your child could end up in the hands of a complete stranger.

Fortunately, each of these scenarios can be avoided by establishing a Bloodline Trust with your child as the beneficiary.

What is a Bloodline Trust?

A Bloodline Trust is a type of trust that protects assets solely for the blood descendants of the person who creates the trust. This type of trust is a powerful tool that you can use to protect the hard-earned money and assets you leave for your children, while at the same time giving them complete access and control over their inheritances.

A Bloodline Trust is a revocable trust that you set up now for your children. Then when you die, your assets will be divided into separate trusts (one for each child). Each separate trust will be used only for the sole benefit of that specific child and their blood descendants.

If you believe that a child can manage their trust responsibly, he or she can serve as the trustee of their Bloodline Trust. This will allow them to enjoy complete access and control over the trust assets, and to invest and use the assets in any way they wish.

On the other hand, if you are concerned about a child’s ability to manage his or her trust responsibly, you can appoint a bank or professional trustee to manage the trust for them.

How a Bloodline Trust Protects Your Children’s Inheritances

When money and assets are left to a beneficiary in a Bloodline trust, which becomes irrevocable after you pass away, their creditors cannot access the funds to satisfy debts, nor can their spouse take any of it in a divorce. In fact, assets held in a Bloodline Trust can only be used for the benefit of the beneficiary and his or her blood descendants.

Then when the beneficiary of a Bloodline Trust (your child) passes away, whatever assets remaining in the trust go to your grandchildren or another blood descendant, but not to your child’s surviving spouse, who might remarry and then give the assets to their new spouse, leaving your grandchildren with nothing.

Thus, a bloodline trust can ensure that assets that you leave behind with your children will stay in your family to benefit future generations of your bloodline.

Contact an Experienced Virginia Estate Planning Attorney

A Bloodline Trust is an excellent tool for protecting the inheritances you leave to your children, and to keep your hard-earned assets from winding up in the hands of complete strangers.

For assistance with setting up a Virginia Bloodline Trust to ensure that the assets you have worked so hard to accumulate stay in your family, call our law firm today at (703) 553-2577 or use the contact form on our website to arrange a consultation with an experienced Virginia estate planning attorney.

The information on this site is for general informational purposes only. The information presented in this site is not legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this site.