The risks of making gifts outright in a will or trust is one aspect of estate planning that many people overlook. Unfortunately, many Americans are not aware that such gifts do not offer any asset protection.

Receiving an inheritance suddenly can have unintended consequences, such as jeopardizing eligibility for benefits like Medicaid or Disability. Additionally, these assets may be vulnerable to claims in the event of a lawsuit, divorce, or bankruptcy.

To safeguard your assets effectively, consider asset protection planning. One effective strategy is to appoint an independent trustee, executor, or personal representative. This approach can provide the maximum level of asset protection available under both federal and state law.

Contrary to popular belief, hiring professional third parties for these roles may not be as costly as you think. While some fiduciary services charge percentage-based fees, other fiduciaries, including our firm, offer fiduciary services at flat and hourly rates.

If you are interested in learning more about options for fiduciary services—whether for a new estate plan or as an update to your existing documents—please do not hesitate to reach out to our office.