Too many married couples unknowingly forfeit the full protection from death taxes available to them under the Internal Revenue Code. In heritance Protection Assuming your hard-earned assets escape unnecessary death taxes through proper planning, all may be for naught unless you protect the inheritance both from your heirs and for your heirs. First, no one values the worth of a dollar like the person who earned and paid taxes on it. Second, inherited wealth has tendency to attract problems, especially if that inheritance remains unprotected. Even worse is the potential damage to your heirs.
Inherited wealth tends to attract problems like steel to a magnet.
Couples that can weather financial poverty may divorce over financial prosperity. Suing deep pocket defendants has become almost a national past-time in our court system. The past, present or future creditors of your heirs will look to your wealth for financial satisfaction. While divorces, lawsuits and bankruptcies can strike any family at any time, proper inheritance protection planning may prevent your wealth from being taken. Generally speaking, under a Discretionary Trust a Trustee of your own selection administers and distributes your wealth for your heirs.