A child’s wedding day is one of the happiest occasions in life for most parents, especially when they approve wholeheartedly of that child’s choice of mate. Sometimes, however, the choice is not always welcomed, and parents become concerned about how to protect assets they plan to leave their children in case of a divorce.
Fortunately, there are several estate planning devices that allow parents to shield assets from those who marry – and may divorce – their children:
Irrevocable trust – one of the most common ways to pass assets to children, an irrevocable trust provides asset protection as long as it is not mixed with marital funds.
Preservation trust – this type of trust can be used to protect assets from a divorce by having your child place his or her assets into the trust and naming a beneficiary that is someone other than a spouse.
Post-marital agreement – many parents are unsuccessful in negotiating a prenuptial agreement before the wedding, and find it easier for children to accept the drafting of a post-nuptial agreement later on to protect family assets.
This article is a service of Elena Ortega-Tauler, Family Wealth Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today toschedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.