When you start thinking about how to improve your life, there might be one thing that stands out: your finances. The right financial situation can really make or break your experience, as well as tip the scales on how you feel about life in general. Fortunately, by learning a few simple financial tricks and tips, you can completely shift things into your favor. On this website, you will be able to move forward to learn about finance and money, since you never know when you will be faced with a new issue. By knowing how to master your finances, you can experience a newfound sense of freedom and enjoy your daily life.
3 Ways To Use Trusts To Protect An Heir In A Bad Marriage
Do you worry that your adult child is in a bad marriage or that their personality tends to lead them to bad relationships? If so, you probably want to help but aren't sure how. Did you know that one way to help your adult children is to complete the right estate planning on your part? Why? Here are a few ways that good estate planning helps heirs with relationship struggles.
1. You Protect Nonmarital Assets
In general, an inheritance by one spouse is considered nonmarital, or individual, property if they divorce. This means it won't be split among the parties.
However, the most common way to invalidate this and see it included in marital property is to mingle it with family money in accounts or in usage. Therefore, a separate trust managed by a third party ensures your child's inheritance always remains theirs and never becomes accidentally comingled.
2. You Make Them Less of a Target
If your child's inheritance is significant, this could cause current or future romantic partners to try to get that money through your adult child. Protect them from such predators by making it clear that their inheritance won't be given out freely or made accessible to spouses.
A trust allows you to set boundaries for the benefit of your heirs. These boundaries could include a set amount of money per year, funding only certain activities or purchases, waiting periods or age-based distributions, or paying bills directly to creditors rather than handing out cash.
3. It Provides an Easy Excuse
Perhaps you worry that your child has trouble saying "no" to their partner or others asking for money. In this case, you can help them out by making "no" easier. A trust's rules are set up by the grantor (the person who funds it), and the successor trustee is usually not allowed to change these terms after you pass away. The beneficiary also cannot change them. So your child has a legitimate excuse to say "no" to people who try to pressure them.
Where to Learn More
Want to know more about the strategic use of a trust to help protect your heirs from bad romantic partners? Start by meeting with a trust and estate planning professional in your state. They will work with you to identify the best ways to use this legal tool to target your heir's health and welfare — no matter how their personal life works out.