It can be wise to protect an inheritance from the spouse of your adult child.

Many Americans work hard and budget to build their wealth.

For those who do not anticipate spending down their assets during their lifetime, estate planning goals often include leaving an inheritance to their adult children.

With high divorce rates, parents are commonly concerned about protecting any inheritance for their children so it does not benefit a spouse through potential divorce proceedings or creditors.

Inheritance planning with an experienced estate planning attorney is helpful in these situations.

Divorce does not have to rob your child of his or her inheritance.

Can a Trust Keep an Inheritance Separate?

Trusts can be incredible tools for protecting the inheritance of your children "for" and "from" them as needed.

How can trusts shield assets from their spouses?

You can create terms of a trust to designate how and when assets are to be distributed to the beneficiaries.

Trusts can be set up, funded, and managed while you are alive, and their distribution terms can be triggered at your death.

You can even designate a trust as the beneficiary of life insurance policies, retirement accounts, or other assets.

When you create a trust, you will designate a trustee to follow your instructions for managing and distributing trust assets.

Should My Child Get a Prenuptial Agreement?

Another method for protecting inheritances from the spouses of your children is through a prenuptial agreement.

These documents no longer carry the stigma they once had.

In fact, in some social circles, "prenups" can be status symbols.

Because prenuptial agreements are increasingly common, it can be easier to recommend your child sign one prior to marriage to outline financial matters around divorce.

The document can specify assets belonging to your child to prevent claims from being made by the spouse.

Although a viable option, a prenuptial agreement can only protect your adult children if they choose to implement a prenuptial agreement.

What if My Child Is Already Married?

If your child is already married, it is too late for a prenuptial agreement since the "pre" part has passed.

However, a postnuptial agreement is possible.

These agreements function like prenuptial agreements but are signed after the wedding.

A postnuptial agreement outlines what assets will remain separate during a divorce.

This can even include future inheritances.

Having conversations around postnuptial agreements can be complicated by emotions.

These agreements require clear communication between your child and his or her spouse.

Although these discussions can be challenging, they are necessary when protecting inherited assets.

How Do Estate Planning Professionals Help with Inheritance Planning?

An experienced estate planning attorney can help create prenuptial agreements, postnuptial agreements, or trusts to shield inheritances for adult children.

These professionals bring knowledge and expertise to navigating the complexities of financial tools, estate planning strategies, and family dynamics.

By partnering with an experienced attorney, you can strategically structure your assets and accounts to reduce risks.

Take Action to Protect Your Inheritance for Your Child

If shielding any inheritance from the spouses of your children is important to you, then you should work with an experienced estate planning attorney.

Those looking for an Overland Park estate planning attorney can contact Harvest Law KC.

What are Key Takeaways for Protecting an Inheritance for Your Child?

If your adult child gets divorced or marries a fiscally irresponsible spouse, any inheritance you leave could be at risk of being lost.

Estate planning with prenuptial agreements, postnuptial agreements, or trusts can help protect inheritances.

While a trust allows you greater control over asset management and distribution, prenuptial and postnuptial agreements can give your child agency in protecting their inheritances.

Working with an experienced estate planning attorney can allow you to structure your inheritance planning to preserve your family wealth while giving you peace of mind.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: Northwestern Mutual (Apr. 22, 2022) "Can I Leave Money to My Kids But Not Their Spouses?"