Estate planning is not just about making sure that a person can pass down their property to their loved ones.
Depending on a Texas resident’s situation, they may also want to consider using estate planning as a way to protect their own assets from their creditors.
More people may need to think about this prospect than one might believe.
Even if a person is in good financial shape right now, a sudden and serious illness, an accident or a bad business turn can quickly change that.
After all, creditors are not always banks or credit card companies. Government bodies will sometimes claim a person owes them taxes or other funds. Likewise, business partners or other business affiliates may claim proceeds. Even an ex-spouse can be a creditor following a divorce.
Furthermore, it is not just a person’s own creditors that could wind up taking all or part of an estate’s property.
A person thinking about estate planning should also consider whether their loved ones might have creditors who could lay claim to an inheritance either now or in the future.
What sort of estate planning techniques are available to protect assets?
Often people use a type of trust to protect their legacy from creditors so that their loved ones can enjoy it.
When properly thought through and carefully drafted, the creator of a trust can rest reasonably assured that their hard-earned money will make it to their loved ones and not wind up going to pay bills that they may feel they should not be responsible for.
There are other possible estate planning tools as well. Which tool is right for a person will depend on their situation. They should make sure that they explore all of their legal options carefully.