Protecting assets for loved ones is a popular reason for trust creation.
They rise, and they fall.
Some leave on top.
The latter is the sad story of Aaron Hernandez who formerly played tight end for the Patriots in the NFL.
After being convicted of murder, he hanged himself in prison earlier this year.
The criminal conduct and subsequent conviction cost Hernandez a contract worth some $40 million with the Patriots.
According to a recent Yahoo article titled “Report: Aaron Hernandez may have hidden money in trust before his death,” Hernandez also left behind an irrevocable living trust.
Why would he create an irrevocable trust?
An irrevocable trust could be appealing because, under the right circumstances, it would protect trust assets from creditors.
His assets at death were estimated at $1.2 million, but he also had more than $2.8 million in debt.
In the midst of all of this, Hernandez left behind his partner and their minor daughter Avielle (age five).
Consequently, an irrevocable trust would allow Hernandez to pass along some financial support to Avielle, despite his personal creditors.
Although Hernandez made many poor decisions in his life, this estate planning choice may have been a smart one for his family.
There have been no updates on the status of this irrevocable trust.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Yahoo (November 28, 2017) “Report: Aaron Hernandez may have hidden money in trust before his death”