Another area that most people don’t like to think about is the possibility of separation or divorce from their spouse and/or the possibility of a child going through a divorce. As part of your planning, Wealthplc specializes in preserving your assets against the devastating financial setback of divorce. Strategies to consider
- Pre-nuptial agreements
- Post-nuptial agreements
- Asset protection trusts prior to marriage
- Long-term total discretionary trusts for children’s inheritance
If you are already divorced and remarried, there are a plethora of issues to address with your planning.
- Do you divide your assets upon death to your new spouse and children of your first marriage?
- Should most of your assets pass to a marital trust which provides for your new spouse during lifetime, but are eventually distributed to your children?
- Who will be in control of such trust (trustee)?
- Are your beneficiary designations under your qualified retirement accounts (401(k), IRA, etc.) and life insurance policies coordinated with your overall objectives?
We are just touching the tip of the iceberg with these questions. The key is to plan ahead.
Most people are not aware that their “wealth preservation” plan can have an adverse effect on the division of assets in a child’s divorce. Massachusetts judges have taken into consideration the estate plans of the parents of the divorcing child when deciding how to award the marital assets in a divorce proceeding. As outrageous as this may sound, parents have been subpoenaed to produce their current estate planning documents and financial statements in a child’s divorce case. Be prepared by having counsel who is aware of such issues.