What options exist to protect assets from access by creditors of the heirs?
June 30, 2022 | 40,00 EUR | answered by Mia Widmann
Dear attorney specializing in inheritance law,
My name is Theodor Neumann and I have a question regarding the protection of my assets from the claims of my heirs' creditors. The situation is as follows: In my will, I have bequeathed my assets to my two children in equal shares. However, I am concerned that one of my children may run into financial difficulties and therefore the inheritance could be seized by creditors.
The current situation is that I do not want my hard-earned assets to fall into the hands of creditors and not benefit my children. I want to ensure that my inheritance is protected and that my children can benefit from it without any worries.
What are the options available to protect my assets from the claims of my heirs' creditors? Are there legal instruments or contracts that I can enter into in advance to ensure that my inheritance is protected? Or are there certain ways to structure the will that can prevent the inheritance from being seized?
I thank you in advance for your professional advice and assistance on this important matter.
Sincerely,
Theodor Neumann
Dear Mr. Neumann,
Thank you for your inquiry regarding protecting your assets from the claims of your heirs' creditors. It is understandable that you are concerned that one of your children could encounter financial difficulties and that your inheritance could be seized by creditors. It is important to take measures early on to ensure that your hard-earned assets are passed on to your children without any issues.
There are various ways to protect your assets from the claims of your heirs' creditors. One option is to set up a so-called protected account for your children. This is a special checking account that creditors cannot access. This can be an effective measure to protect the inheritance from seizures.
Furthermore, you can also make certain provisions in your will to protect the inheritance from the claims of creditors. For example, you can include a clause in your will stating that the inheritance is not subject to seizure. Appointing an executor can also help protect the inheritance from creditors, as the executor manages the assets in trust and makes seizure more difficult.
Additionally, establishing a foundation or trust can also protect the assets from creditors' claims. A foundation or trust can act as a separate legal entity and manage the assets in trust, so that they do not belong directly to the heirs and cannot be seized.
It is advisable to seek advice from a specialized estate lawyer in your specific situation to identify and implement the appropriate protective measures for you. Each case is unique and requires a tailored solution.
I hope this information is helpful to you and I am available for any further questions. Thank you for your trust and I wish you all the best for your future estate planning.
Sincerely,
Mia Widmann
Estate Lawyer
