What is a Castle Trust and How Does It Work?
May 9th, 2018
A Castle Trust is a comprehensive type of trust that is designed not only to protect your assets from the costly, time-consuming probate process, but also to protect your children’s inheritance from divorce and creditors and your own assets from the costs of long-term care. While a Castle Trust is irrevocable, it does allow you to retain a fair amount of control after you have established it. For instance, you can change beneficiaries, change trustees, and even remove assets from the trust at any time.
One big advantage of a Castle Trust is that it protects your assets despite any changes in your family structure. For instance, a Castle Trust can protect your children from being disinherited in the event of remarriage, in that the surviving spouse cannot take the inheritance and use it for a new spouse. Likewise, a Castle Trust can protect your child’s inheritance from being awarded in divorce proceedings to an estranged spouse. In an anticipation of these unexpected changes in family dynamics, a Castle Trust can help guard against unwanted results.
Another big advantage of a Castle Trust is protection against creditors or lawsuits, whether they concern you or your children. For example, if you cause a car accident that injures another person and he or she sues you, then a Castle Trust will protect those assets from being used to satisfy any judgment against you, as well as any other creditors attempting to collect funds from you. The same goes for your children; any creditors cannot reach the assets in a Castle Trust, even if they are meant to benefit your children.
Whether you are interested in executing a trust, a will, or both, we are here to help you explore your options and make the decisions that are best for you and your family. At Legacy Law Center, our goal is to ensure that you have an effective estate plan in place to meet your loved ones’ needs and safeguard all of your assets. We have the skills and knowledge that you need to make the decisions about estate planning for your loved ones. Call your Michigan estate planning attorneys at (734) 995-2383 and schedule an immediate appointment.