The most common question we are asked is “what would happen to my son or daughters inheritance if they got divorced ?”
It’s an understandable concern when you consider that an estimate of 1 in 2.5 marriages end in divorce and 1-5 children live in stepfamilies.
The answer to the question is that it depends on how; a son or daughter us to receive their inheritance.
Typically, if someone has received inheritance and then subsequently gets divorced, the inheritance they have received will form part of the divorce proceedings. In all likelihood, the inheritance would be shared with the estranged spouse along with any other individually or joint held assets.
However, and this was something most people were not aware of, assets that are ‘LIKELY TO BE INHERITED’ can be and often are, included in divorce proceeding. This means that if a son or daughter were to get divorced whilst you were still alive, the inheritance that they would receive in the future would often still have to be shared with an ex-wife or husband even if they became divorced several years earlier.
There are Solutions
There are a number of things that you can do to help make sure that a beneficiary holds onto all of their inheritance if they were to become divorced but, to gain that protection and certainty the solution should ideally form part if a wider look at legacy planning in general as the right solution can be different for different people.
If this is a topic that concerns you and you would like to discuss your individual circumstances please feel free to give me a call or send me a message.
Ask me how to protect a loved one’s inheritance #
Protecting inheritance for loved ones seems to be an issue that many people are particularly interested in so, I intend to feature different topics relating to the issue on a regular basis in future newsletters.
Please remember that an appointment or telephone consultation is free and without obligation so why not give me a call or send me a message.