Children’s Trust

Secure / Private / Divorce Proof

Using a CHILDREN'S TRUST to own 99% of a Family Limited Partnership (FLP) is an excellent way to provide superior lawsuit protection, financial privacy and render specified assets effectively Divorce Proof. As you'll see, it is flexible as well as protective; private as well as convenient. So long as it was not established as part of a Fraudulent Conveyance scheme, assets inside a CHILDREN'S TRUST are beyond the reach of the parents creditors or lawsuit adversaries

What is a Children's Trust?

In most cases, the CHILDREN'S TRUST will be established by Parents or Grandparents for the sake of minor children as Beneficiaries. The individuals establishing it cannot be its Trustee(s). The Trustee will manage the assets inside the Trust for the sake of the Beneficiaries until such time as the Beneficiaries either reach the age of majority (either age 18 or age 21, depending on the State) or they will receive distributions upon the death of the person who settled or established the CHILDREN'S TRUST.

How Does a Children's Trust Work?

Assets and investments held in the CHILDREN'S TRUST are inside of an irrevocable trust, meaning that they are outside of the Estate of the persons who established it as well as the persons who administer it. That means that assets you have gifted to the CHILDREN'S TRUST are no longer yours. They have been given away. Thus, they are not available to creditors or judgments, including Divorce Judgments.

A CHILDREN'S TRUST can hold a 99% interest in a Family Limited Partnership (FLP) in which you are the (managing) General Partner. The trust might also own majority interests in a limited liability company (LLC) or be a stockholder in a domestic or international corporation (or a series of such legal entities). A dentist, for example, might take tax-deductions for leasing dental office equipment from a Corporation that owns the equipment, but with the corporate stock being held inside an FLP with a CHILDREN'S TRUST as the majority Limited Partner.

Assets held inside a CHILDREN'S TRUST are also beyond the reach of the creditors of the trusts Beneficiaries until such time as they are distributed. This could be helpful in protecting an inheritance from your adult children's future divorce, for example.

How can I learn more?

To learn more, you can either (1) attend one of our upcoming scheduled Conferences (2) obtain a Self-Study Course or (3) set up a Private Consultation with an Attorney.

How do I get started?

Take a few minutes to determine which of your assets you can least afford to lose. Then after a private consultation ask us to prepare a CHILDREN'S TRUST. We will gather the information on what you want done, have the legal documents prepared and it will be ready for your signature. We will show you how to integrate the CHILDREN'S TRUST with the rest of your Estate Planning, Business Planning, Financial Planning and Asset Protection Plan.

See how we can help you.