Protect Your Family! (part 4 of 6)

The storybook marriage was over, Mary had lost her job, and with the extra time at home she discovered her husband’s infidelity.Mary’s father had died seven years ago and left her a substantial inheritance.Not believing that her husband could do such a thing, Mary had simply combined the inheritance with the other marital assets.Unfortunately, in the divorce there was no way to distinguish the inheritance from the marital property.Being unable to determine the difference, the judge divided all of the assets between Mary and her unfaithful husband.To add insult to injury, half of Mary’s inheritance was awarded to her ex-husband.

But the outcome didn’t have to be this way.If Mary’s father had done a thorough estate plan, he would have left the inheritance to Mary in trust.Mary would control the trust, but the trust would help her keep the inherited assets separate from the marital assets.If Mary used the assets inside the trust for her benefit, but did not draw them out of the trust and spend them, she could have easily identified the inherited assets in the divorce.As a result, the inherited assets would not have been divided in the divorce.

Estate planning can and should be more than avoiding probate and saving taxes.A properly designed estate plan can provide many additional advantages that protect your family.Most of these protections are ignored in cookie-cutter form-driven estate plans.Individuals should look closely at all of the benefits a properly designed estate plan can provide to them while they are alive, and provide to their families after their death.After all, when is it okay that your child’s ex-spouse receives the inheritance you left to your child?

If you have questions about effective estate planning, we encourage you to gain more knowledge about available planning options by visiting
www.EstatePlansThatWork.com to sign up for a complimentary small group educational workshop.