You've worked hard all your life to earn money and provide for your children. Now your children are married and you have been thinking about estate planning. What will happen to your money if you leave it to a child who divorces or dies before his or her spouse? If one of these events happens, your child's inheritance could end up completely outside your family line and even go to the second or subsequent spouse of your current daughter-in-law or son-in-law! How can you prevent this and protect your children and grandchildren?
One of the best ways to protect your child's inheritance from predatory spouses and creditors is with a revocable living trust for your children and grandchildren. A living trust enables you to manage your hard-earned assets during your lifetime and to maintain control of these assets even after you are gone. With a trust, you determine when money is paid out, how much money is paid out, and to whom. With the right type of trust, your child may even have protection from creditors. In contrast, if you leave money outright to your child, it is not safe from your child's creditors or divorcing spouse. If your child dies before his or her spouse, the money will probably go outright to your son-in-law or daughter-in-law and be lost completely. Even if you trust your child's spouse, the money can still be lost to creditors and bad financial decisions if it goes outright to your child's spouse. A trust can prevent your child's spouse from receiving your child's inheritance directly, guard against poor financial decisions, and keep an inheritance in your family line for your descendants.
If you are concerned about your child's predatory spouse or creditors taking your child's inheritance and would like to find out more about safeguarding inheritances for your children, contact Nancy at 980.247.3011 to schedule an estate plan consultation and stategy session.
DISCLAIMER: This is an advertisement and contains general educational information only. The information offered in this post does not constitute legal advice and reading the information does not create an attorney-client relationship with Nancy Roberts or the Brockmann Law Firm. Before taking any action, you should always seek legal advice from an attorney you hire, who advises you based on your specific facts, circumstances, situation, and the appropriate governing law.