All individuals want to leave something to their children in order to secure their future. But people with debt problems fear that if they leave something to the child, then the inheritance can be taken by collector or used irresponsibly, for example to support a drug, alcohol or other substance abuse problem. However, fortunately, an estate planning attorney can aid you in planning for your children without worrying about the inheritance could be squandered.

Beneficiaries of an estate often face a problem where the inheritance goes to creditors or other third parties. On the recent economic surface, almost all Americans are drowned under the sea of overwhelming debt. Foreclosures are common financial obligations, and after foreclosure many people have a judgment entered against them for large sums of money. Many others are living on credit cards that charge up high interest rates and become impossible to be paid off. In either of the two cases judgment goes in favor of the creditors, and debt collectors persistently chase the debtor to collect the debt.

There are other common issues as well, like a child makes poor choices with money or a child with serious substance abuse and addiction problems. If your child or any other person to whom you want to leave your bequest is struggling for any of the above mentioned problems, you must inform to your estate planning lawyer. Proper planning can help you make bequests to your loved ones without creditors and poor decision making affecting the inheritance.

There are many tools that your Denver Estate Planning Attorney uses to protect your hard earned money from ending up in the hands of a creditor or a child with addiction problems. The most widely used tool is a credit shelter trust with a spendthrift clause. This trust can be funded during your life or at your death and it is to be managed by a bank or someone you trust, called a trustee. The trustee has full liberty to give money to your child only for certain reasons like child’s legitimate health, education, maintenance and support expenses.

If you set up a credit shelter or spendthrift trust, creditors will never be able to sue the trust and make its assets. The only way by which they can get anything is attaching the money or assets when they are distributed. But ideally the child spends the money on living expenses by the time creditors have a chance.

Another significant benefit of this trust is that it allows you to have a bit more control over the assets, where the assets go when your child or loved one passes away.

So if you are worried about how your child or loved one will use the asset that you are leaving to him/her, take help from an estate planning attorney.