Yorkville Wealth Preservation Attorneys for Family Transitions

Lawyers Helping Families Protect Assets and Preserve Wealth During Divorce or Other Transitions in Yorkville, IL

Families rarely stay the same over long periods of time. Marriages may break down and end in divorce. As children grow older, they will graduate from high school, begin attending college, and eventually move out on their own. A person may decide to get married for a second time, which could affect their children and other family members. As people get older, they may need to begin receiving long-term care in a nursing home or assisted living facility. As a family goes through transitions, decisions may need to be made about who controls certain property, who will inherit assets, and how to protect family wealth.

When a family creates an estate plan, it will typically reflect their circumstances at that time. However, when major changes occur, updates may need to be made, and steps may need to be taken to protect assets, ensure that different family members will have the financial resources they need, and preserve family wealth so it can be passed on to future generations. If these issues are not addressed correctly, assets may end up going to the wrong people, family members may not receive the inheritances they expect, or an estate may be depleted because of unexpected expenses.

At Gateville Law Firm, we help families adjust their plans and take steps to protect their assets as they experience life changes. Our attorneys have decades of experience handling wills, trusts, probate, and family law matters, and we know how these areas can overlap with each other and affect a family's finances and future. We take time to understand our clients' family relationships and goals, and we work with them to put plans in place that will protect what they have built.

Family Transitions That Can Put Assets at Risk

Separation and Divorce

When a couple gets a divorce, they will be required to divide their marital property, and each spouse will generally be able to keep their non-marital property. This process can become complicated when a couple owns significant assets or when either spouse has received an inheritance. Our lawyers can provide guidance on the steps that can be taken to protect assets during and after a divorce, and we can make sure the proper updates are made to an estate plan to reflect a family's post-divorce circumstances.

Children Reaching Adulthood

When a child reaches the age of 18, they may take steps toward independence, including controlling their own finances. Parents may no longer be able to access financial accounts in a child's name, and plans may need to be made to transfer ownership of certain assets. A family may need to address issues related to an inheritance that a child has received or assets that are held in a trust for the benefit of a child. Certain steps can be taken to protect young adults from losing assets due to poor financial decisions, creditors, or a future divorce.

Health Problems and Incapacity

A stroke, a cancer diagnosis, or other health issues can affect a person's ability to care for themselves or handle their own financial affairs. If plans are not made in advance, a family may need to ask a court to appoint a guardian. The need for long-term care could also deplete the assets a person has saved, which may affect inheritances for other family members or the ability to use certain assets.

Remarriage of a Parent

Blended families may face a number of unique concerns related to estate planning and asset protection. If plans are not made in advance, a person's new spouse may have control over their assets after their death, which could prevent their children from receiving intended inheritances. To ensure that a person's wishes will be followed, a couple may choose to sign a prenuptial agreement, or estate planning documents may be put in place that will protect certain assets and make sure they are distributed correctly to different beneficiaries.

Options for Protecting and Preserving Family Wealth

Establishing and Funding Trusts

Trusts can be used in a variety of ways to protect assets and make sure they will go to the correct family members. Marital trusts or QTIP trusts may be used to ensure that a spouse will have access to certain assets, and other types of trusts may be used to provide for children or other relatives. A spendthrift clause in a trust can help protect assets from creditors or other losses. However, a trust will only be beneficial if it is properly funded, and steps will need to be taken to retitle real estate property, bank accounts, or investments into the name of a trust.

Updating Beneficiary Designations

For life insurance policies, 401(k) plans, IRAs, payable-on-death accounts, and certain other types of assets, beneficiary designations will ensure that assets can be passed to the proper people. These designations will override a will, and assets will be passed outside of probate. Updating beneficiary designations after family transitions can make sure assets will go to the intended family members.

Addressing Incapacity Concerns

A power of attorney for property and a power of attorney for health care will allow a trusted person to act on someone else's behalf. Preparing these documents in advance can help ensure that a person's assets will be managed correctly if they become incapacitated due to unexpected health concerns. For trusts, a successor trustee will be able to take over management of trust assets in these situations.

Planning for Long-Term Care

Nursing home care can cost thousands of dollars on a monthly basis. While Medicaid can cover the costs involved in long-term care, a person may not qualify for Medicaid benefits if they own substantial assets. As a family prepares for the transition that will occur when a person begins receiving long-term care, they will need to take steps in advance to transfer assets out of their estate. Our lawyers can provide guidance on how to use irrevocable trusts, spousal protections, gifting strategies, or other methods to protect assets from being lost to pay for long-term care.

Documents to Review After a Major Life Event

• Wills and Trusts: It is important to confirm that terms naming beneficiaries, trustees, and guardians reflect a person's or family's current wishes.
• Beneficiary Designations: By checking insurance policies, retirement accounts, or transfer-on-death accounts, a person can make sure these assets will be distributed correctly.
• Powers of Attorney: A person may need to update these documents to remove a former spouse, estranged relatives, or others who may no longer be able to serve as their agent.
• Deeds and Account Titles: It is important to make sure property is owned and titled in a way that supports an overall estate plan.

Frequently Asked Questions About Asset Protection and Family Transitions

Contact Our Yorkville, Illinois Asset Protection Lawyers for Family Transitions

If the proper steps are not taken after changes that have affected your family, years of planning may come undone. However, by taking the right steps after family transitions, you can make sure your wealth will be protected and passed on to the people you love as planned. At Gateville Law Firm, we can help you review your estate plan and make updates to ensure that it fits your family's circumstances and will provide the benefits you need in the future. Contact our Yorkville, IL asset protection attorneys at 630-780-1034 to schedule a consultation.