Stonington Estate Planning Lawyer

Estate Planning Is More Than Estate Tax Avoidance

Estate planning is commonly described as the transfer of assets from one generation to the next, taking into account estate, gift, and generation-skipping transfer taxes. While tax efficiency is important, it represents only one component of a well-designed estate plan.

A comprehensive Connecticut estate plan must also address Asset Protection, family dynamics, creditor exposure, divorce risk, incapacity, and long-term preservation of wealth.

A properly drafted estate plan will typically include:

• Wills
• Living Trusts
• Powers of Attorney
• Living Wills and Advance Directives
• Designations of Conservator

Equally important is ensuring that clients understand the purpose, function, and long-term implications of each document they execute.

Asset Protection Should Be Central to Every Estate Plan

Given the prevalence of divorce and the reality that we live in an increasingly litigious society, Asset Protection should be a primary consideration in nearly every Connecticut estate plan, regardless of estate tax exposure.

Additional circumstances that heighten the need for Asset Protection include:

• Second or third marriages
• Children or grandchildren with special needs
• Disability or incapacity
• Substantial inherited wealth

Asset Protection involves structuring ownership, control, access, and management of assets to preserve value in the face of potential creditor claims.

Why Trusts Should Not Automatically Terminate at Age 35

Despite these considerations, many estate plans drafted by general practice attorneys in New London County terminate trusts for children at or around age 35. Sophisticated Trust & Estate practitioners rarely adopt this approach.

The reason is straightforward: Asset Protection.

One of the most powerful features of a properly drafted trust is its ability to protect trust assets from the creditors of the beneficiary—including former spouses.

Statistically, most divorces occur within the first twenty years of marriage. With divorce rates approaching 50%, the most likely creditor a child will face is an ex-spouse. Once trust assets are distributed outright, that protection is permanently lost.

A More Thoughtful Approach to Protecting Children’s Inheritances

A more reasoned strategy is to retain inherited assets in trust well beyond age 35, often for the lifetime of the child. When properly structured, such trusts can:

• Provide meaningful access and flexibility
• Protect assets from divorce and creditors
• Preserve wealth from mismanagement
• Support multi-generational planning goals

For this strategy to be effective, Asset Protection must be a primary drafting objective, not an afterthought.

Estate plans that balance transfer tax efficiency with long-term Asset Protection are typically designed by attorneys who limit their practice to Estate Planning and Trust & Estate Administration, rather than general practitioners.

Estate Taxes May Not Be Your Greatest Risk—But Divorce Might Be

Given the current Federal and Connecticut estate tax exemptions, many individuals will not incur estate taxes at death. That does not mean their estate plans are complete.

Your children, however, may face:

• Divorce
• Lawsuits
• Creditor claims
• Financial instability

If a divorce occurs after assets have been distributed outright—particularly after age 35 and after both parents have passed—those inherited assets may be entirely unprotected.

Only an attorney who focuses on Estate Planning and Asset Protection can help design a plan that protects your children’s inheritance long after you are gone.