For many parents and grandparents, watching the next generation marry and start their own families is a joyous occasion. But, along with the celebration, this can also be a time where concerns about the family wealth arise. Are there ways for Georgia estate planners to protect their future inheritance from being lost in a divorce.
Trusts can be key to protecting inheritance, no matter what the future holds
Setting up a trust allows an estate planner to set certain restrictions on how assets can be released and spent. This could include instructions on how the money can be used, or when it can be accessed. It can also protect the money from a divorce, so long as it remains within the trust and has not been removed.
Inheritance money that has been given or spent may be included in divorce
Beneficiaries may be eager to receive their inheritance at once. Or, they may want to spend it on a marital asset, like a house or car. If money is in a trust, it is important that beneficiaries know the risks of taking it out as it will now be considered in any possible future property division.
Beneficiary’s marital status, asset types may factor into decision-making
Some people may consider a trust early on, before their children even marry. This is often a decision taken by those with a large amount of family wealth to consider, or those with concerns about their children’s ability to manage finances. Others start thinking about the option when the beneficiary gets married, or if they find out the marriage is at risk. Whenever one begins considering the implications of divorce and inheritance, the best first step is to speak with a Georgia estate planning attorney.