How a Trust Protects Generational Wealth

 Posted on June 27, 2024 in Asset Protection & Wealth Preservation

If you have family wealth to preserve for future generations, you need a trust. Trusts are far more protective of generational wealth than a will. If you use a will, your only option would be to have each of your children claim their entire inheritance immediately. A trust can preserve the wealth over a long period of time and allow your estate to continue growing in value long after your death. You may want to create multiple types of trusts to serve different purposes. A Yorkville, IL trusts and estates attorney can help you design the right estate plan to preserve your generational wealth for decades to come.

How a Long-Term Trust Preserves Wealth for Future Generations

A few of the ways a trust can protect generational wealth include:

• Building trust principal - Your trust principal can continue growing if you direct your trustee to continue investing the funds contained within your trust. For this to work, you must choose a financially savvy and responsible trustee who is capable of making sound investments. You may want to consider choosing a professional trustee. 
• Making distributions gradually - Rather than distributing your children’s entire inheritance to them all at once, you can use a trust to distribute funds slowly, over time. This is especially wise if your children are young or you are unsure of their ability to avoid quickly spending the bulk of their inheritances. 
• Backing your children and grandchildren’s future endeavors - You can allow your trustee to make circumstantial distributions. One option is to direct your trustee to distribute the funds necessary to support your children’s or grandchildren’s educational and business endeavors. For example, if one of your children comes to your trustee with a sound business plan, your trustee could distribute the funds your child needs to start his or her business. 
• Protecting family properties - You can protect family real estate by keeping it in your trust rather than giving it to an individual to transfer into his or her own name. This can prevent your descendants from unwisely disposing of the property and encourage them to care for the property. 
• Providing for future descendants - You can set aside funds to benefit grandchildren or great-grandchildren who are not yet born. This is often done by leaving money to be distributed to each child or grandchild upon the birth of their own children. 

Contact a Kendall County, IL Wealth Protection Attorney

Gateville Law Firm focuses its practices on helping clients protect and preserve their assets for themselves and for future generations. Experienced Yorkville, IL estate planning attorney Sean Robertson has dedicated his career to complex asset protection and estate planning matters. Contact us at 630-780-1034 for a complimentary consultation.