How to Protect Your Estate from a Child’s Divorce

4:11 pm Asset Protection, California Trusts, Estate Planning

divorce split couple 150x150 How to Protect Your Estate from a Child’s DivorceWith the days of arranged marriages far behind us, many parents are concerned about how to protect the assets they plan to leave their children from in-laws who may not be around for the long haul.  Suggesting a prenuptial agreement to your child who is about to get married is usually met with resistance, so most parents don’t even broach the subject.

Fortunately, there are a number of ways to shield your estate from those who marry – and may divorce – your children:

Irrevocable trust – this is a common trust instrument to pass assets to children.  But married children must be careful not to contaminate the trust with marital funds – for example, paying taxes or insurance with marital assets – or else the trust is a bust.

Preservation trust – this can be used to shield assets from a soon-to-be spouse by having the child place assets they already own into the trust and naming someone other than their spouse as beneficiary.

Post-marital agreement – once the honeymoon period is over, it may be easier to convince a son or daughter to draw up a post-marital agreement to protect the family estate.

For more guidance on protecting family assets, contact our Newport Beach law firm.

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