Worried about a Child’s Inheritance in a Divorce?

Worried About A Child’s Inheritance in a Divorce?  Think Inheritance Trust.

In 2019 the U.S. marriage rate for women was 16.3 per 1,000 women 15 years or older.  The divorce rate was 7.6.  For those wondering why women and not men, according to the U.S. Census bureau, women are a better and more accurate source of information than men.  No argument here.

With divorce rates what they are, many family inheritances are split with the ex-spouse.  If you are worried about family property leaving the family line, an inheritance trust may be the answer.

Properly drafted, an inheritance trust protects the inheritance from more than just a spouse.  A properly drafted inheritance trust protects the property from many kinds of creditors.  A spouse is simply a certain type of creditor with more asset-taking power than the average creditor.

Divorce courts may take into consideration inheritance trust assets when dividing property in a divorce.  An inheritance trust combined with a marital agreement (prenup) can greatly decrease that possibility.  Even without a marital agreement, an inheritance trust provides protection.  The fact that the inherited property has not been comingled with marital property is helpful.  So long as the inherited property stays in the trust, an inheritance trust can be very beneficial.