A common inquiry I get from parents looking to protect their children is - "How do I make sure the money I leave for my kids doesn't end up going to their husband/wife?"
The problem is that we can raise our children, but we can't raise the people they marry. We also can't control what happens to our children and their spouses throughout their marriage. I know many parents who have great relationships with their son or daughter's spouse, but they understand that it is impossible to predict what the future will bring.
You can always encourage your children to get a prenup, but many parents understandably don't feel comfortable making suggestions like that, and prefer to leave it up to their children.
So, how do you protect a future inheritance then? You may consider leaving the inheritance to them in a beneficiary asset protection trust. This type of trust is drafted during your lifetime, but doesn't go into effect until after you pass away.
When properly drafted, this kind of trust can:
- help ensure that the inheritance you leave for your children is protected from divorce and remarriage;
- help ensure that your hard earned savings stays in your family regardless of what happens in your son or daughter's marriage
- allow your child and their kid's to benefit from whatever inheritance you leave to them after your passing during their lifetimes
If you would like more information about how a beneficiary asset protection trust might fit in your estate plan, feel free to contact the office to set up a consultation. You can get our contact information by clicking here.