Parents who have built up significant assets that they wish to pass on to children may be concerned about asset protection in the event one of their children gets divorced. Estate planning provides several strategies for accomplishing this through:
Pre-nuptial agreement – although it may be difficult to get children to contemplate divorce right before they marry, they need to be aware of what the financial consequences could be to family assets. A meeting with an Irvine estate planning attorney can help you explain the need for a pre-nuptial agreement.
Irrevocable trust – this kind of trust is commonly used for passing assets along to children, but those that are married must be aware that if they taint the trust with what are considered marital funds, that action will pierce the asset shield.
Preservation trust – if a child already owns significant assets before they marry, they can place those assets into a preservation trust that names someone other than their intended spouse as beneficiary of the trust.
Post-marital agreement – if a parent has been unsuccessful in convincing a child to execute a pre-nuptial agreement, a post-marital agreement can serve much of the same purpose after the marriage has already taken place.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.