Watching your son or daughter get married is supposed to be one of the happiest and most memorable days of your life. However, what people don't always hear about is the concern and uneasy feelings that parents may be dealing with if they are uncomfortable with their child's choice of a partner. Where is the line between wanting what is best for your child and allowing your child to make his or her own decisions (your child is an adult, after all)?
While parents must ultimately accept their child's choice, they do NOT need to accept the fate that many families have fallen victim to: watching their child's partner waste their hard-earned money (or even worse, take it away during a later divorce)! Luckily, families who think ahead and make sure that their estate plan protects against all possible contingencies are able to protect their nest egg from transferring outside of the family.
More and more, families are talking to their estate planning attorneys about ways to protect their family wealth from the issues that their heirs may face after they are gone. One of the most common protections that we see our clients asking for is to protect their hard-earned money from getting into the hands of the son-in-law or daughter-in-law that they are not fond of. Perhaps your child's spouse is controlling and borderline abusive when it comes to finances. Maybe the spouse has an out-of-control spending habit and will waste a large portion of the inheritance that was meant for your child. Even worse, there is always the risk of your child and his or her spouse getting divorced. While you may be happy for your child to be rid of this unworthy spouse, no one wants the spouse to walk away with half of the money that YOU passed on to your own child!
Although there are multiple ways to look at asset protection, one of the most common tools is using a Revocable Living Trust that includes additional language for divorce protection. An experienced estate planning attorney can draft a trust in such a way to protect the inheritance as separate property of the spouse and provide additional barriers to block your child's spouse from receiving the inheritance if they were to divorce or separate in the future.
If you are concerned about the risks to your own family wealth (especially with an unfavorable son-in-law or daughter-in-law), call The Rosenbauer Law Office, LLC today at 513-463-6789 to learn how to protect your own estate!