A Modern Guide from Axis Estate Planning
At Axis Estate Planning, we hear the same concern from families every day: How do we make sure the inheritance we leave behind actually helps our children—and doesn’t disappear to risks we never had to think about years ago?
Today’s financial landscape has changed. Parents are increasingly mindful of:
- A child facing job instability or economic pressure
- Rising personal debt and an inability to meet financial obligations
- Strain within a child’s marriage or partnership
- The impact of blended families
- A child’s level of financial maturity—regardless of age
These worries are not unfounded. Between economic uncertainty, higher divorce rates, and the rapid growth of digital assets, inheritances are more exposed than ever. That is why Axis Estate Planning works closely with families to design plans that protect inheritances from outside threats—and from the child’s own potential vulnerabilities—while still providing meaningful support.
Modern estate planning offers powerful tools to accomplish this, particularly trust-based planning. Below are some of the most effective trust structures we help families implement at Axis Estate Planning.
Discretionary Trusts
A discretionary trust gives the trustee full authority over when and how assets are distributed. Because beneficiaries cannot demand distributions, this type of trust provides exceptional protection—something we often recommend at Axis Estate Planning when parents want strong safeguards in place.
Families turn to discretionary trusts to prevent:
- Loss of assets during a beneficiary’s divorce
- Access by creditors or lawsuit judgments
- Pressure from spouses or outside influences
- Poor money management or financial instability
The person creating the trust (the settlor) can leave guidance, but the trustee ultimately decides what is appropriate. As long as assets remain inside the trust, they are generally shielded from creditors—one of the key reasons Axis Estate Planning uses this strategy in many protective estate plans.
Support Trusts
Support trusts require the trustee to make distributions only for specific needs—commonly referred to as HEMS: health, education, maintenance, and support.
Axis Estate Planning often recommends support trusts for families who want to provide structure while still ensuring a child’s essential needs are met.
Even though only certain “super creditors” (such as child support, alimony, or government debts) can reach these assets, support trusts still offer strong protection, particularly for:
- Adult children who may need ongoing guidance
- Beneficiaries navigating uncertain financial circumstances
- Families who want to ensure inheritances are used responsibly
This balanced blend of protection and support makes support trusts one of the most versatile tools in modern planning.
Spendthrift Trusts
Spendthrift trusts remain one of the most widely used and effective tools at Axis Estate Planning. They prevent the beneficiary from giving away, pledging, or selling their interest in the trust—and protect assets from most creditors who attempt to reach them.
Spendthrift trusts are particularly beneficial when parents worry about:
- Impulsive spending
- Unstable relationships
- Addiction issues
- Business liabilities
- Manipulation by outside influences
Like other trust structures, spendthrift trusts do not block “super creditor” claims, but they provide powerful protection in nearly every other situation, making them a frequent recommendation in our planning process.
Today’s Inheritance Risks Look Different — Your Planning Should Too
Families working with Axis Estate Planning often tell us they feel a sense of relief once they understand how dramatically the landscape has changed since 2020. Inheritances today face risks such as:
- Higher household debt
- Increased divorce rates among younger generations
- More blended families with competing legal interests
- Rising exposure to lawsuits or creditor claims
- Adult children needing ongoing financial help
- The complexity of digital assets and online accounts
- Employment market unpredictability
Because of these realities, more parents are choosing to leave inheritances in trust rather than outright. Trusts allow you to define how assets are used, protected, and passed on—years or decades later.
Axis Estate Planning helps families design these trusts so that inheritances:
- Remain protected from creditors
- Are insulated from divorce
- Cannot be influenced or mismanaged by others
- Provide long-term security and flexibility
- Preserve your intentions well into the future
When structured correctly, a trust becomes a powerful tool that supports your children while preventing the inheritance you worked for from slipping away.
Visit Us: 900 Wilshire Drive, Suite 105, Troy, MI 48084
Call Us: (248) 251-1001
Learn More: www.axisattorneys.com
Protect your children’s inheritance and the legacy you’ve built with thoughtful, proactive planning. Axis Estate Planning is here to help you create a plan that shields your assets from risk, preserves your wishes, and provides lasting peace of mind.