Most people who get married believe it will work out. Unfortunately, many of those people end up being wrong. That’s why when it comes to marriage, it is important to hope for the best but prepare for the worst. A couple of ways that you can do that is with a prenuptial agreement or a postnuptial agreement. Prenups and postnuptial agreements are fairly well known. However, there is another way that spouses can protect themselves and their finances in case their marriage ends in a divorce. It is known as a revocable inheritance trust.
Benefits of a Revocable Inheritance Trust
Revocable inheritance trusts are trusts that you can change at any time. The downside of being able to change a trust at any time is that unlike traditional trusts, revocable inheritance trusts are not protected from creditors or considered separate from your estate. However, the benefits of this type of trust are that you can use it to keep separate immune property, such as large cash gifts from relatives or cash a parent leaves to you as inheritance upon their death.
Keeping those types of assets in a revocable inheritance trust can help prevent them from being considered marital property (property you might have to share with your spouse) if you get divorced. This is because the revocable inheritance trust will own the property and it will be considered a separate legal entity. You would be able to monitor the trust, including keeping track of assets transferred into the trust and making sure that only separate property is placed in the trust. However, you would be able to manage the trust separately from your personal assets.
Discuss Your Situation with an Experienced Estate Planning Attorney
Our experienced estate planning lawyers at Rech Law, P.C. are skilled at assisting clients with preparing wills and trusts, as well as helping them with any of their other estate planning needs. We understand that tackling issues involving wills, trusts, and estate plans can be intimidating. We have years of experience helping people prepare trusts, estate plans, and wills, and we will be there every step of the way to guide you through the process.
For more information about Rech Law, P.C. and how we can help you with your estate planning needs, check out our clients’ testimonials.
To speak with our experienced estate planning attorneys about your situation, call us at (704) 659-0007 or reach out to us online to schedule a confidential, no-obligation consultation.