Bankruptcy
Understand how bankruptcy can impact your estate planning and the steps to protect your family's future.
How does filing for bankruptcy affect existing estate plans?
Filing for bankruptcy can significantly impact your estate plans as it may lead to the liquidation of assets that were intended for heirs, and could affect the validity of certain estate planning tools, like trusts or wills, especially if they were created when debts began accumulating. In some cases, assets placed into a trust may remain protected, but it is essential to understand which assets are exempt from bankruptcy claims. This highlights the importance of structuring your estate plan with considerations for potential financial hardships, including bankruptcy, ensuring that essential family legacies and inheritances are preserved despite financial upheavals.
